Use the consolidated balance sheet of chartered banks in Canada and the balance sheet of the Bank of Canada to demonstrate the effect of each of the following transactions on chartered bank reserves. a. The Bank of Canada purchases securities from banks. Assume that the initial reserve ratio is 20 percent. b. Chartered banks borrow $1 billion from the Bank of Canada at the bank rate. c. The chartered banks reduce their desired reserve ratio.Assume that the reserve ratio is decreased from 20 percent to 19 mercent. Instructions: Enter your answers as whole numbers in the gray-shaded cells of both tables below. PLEASE ALSO ANSWER THIS D. Chartered banks increase their reserves after the bank of Canada increases the interest rate that it pays on reserves. Which of the columns in the above balance sheets represent this action? Options: ? Column A ? Column B ? Column C

Consolidated Balance Sheet: All Chartered Banks A B C Assets: Reserves $ 40 Securities 60 Loans 102 Liabilities and net worth: Demand deposits 200 Loans from the Bank of Canada 2 Consolidated Balance Sheet: Bank of Canada A B C Assets: Securities $283 Loans to chartered banks 2 Liabilities and net worth: Reserves of chartered banks 40 Treasury deposits 5 Bank of Canada Notes 225 Other liabilities and net worth 15