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 percent Instructions: Enter your answers as whole numbers in the gray shaded cells of both tables below. Consolidated Balance Sheet: All Chartered Banks Assets Securities Loans Liabilities and net worth: Checkable deposits Loans from the Federal Reserve Banks Consolidated Assets: Securities Loans to commercial banks OTTI IT Liabilities and net worth: Reserves of commercial banks Treasury deposits Federal Reserve Notes Other labies and net worth 7 / IN / H d. Chartered banks increase their reserves after the bank of Canada incre the interest rate that it pays on reserves Which of the columns in the above balance sheets represent this action?(Click to select 15 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. 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 percent Instructions: Enter your answers as whole numbers in the gray shaded cells of both tables below. Consolidated Balance Sheet: All Chartered Banks Assets: Reserves Securities Loans $ 40 601 1025 $ 60 $ 102 $ 40 60 102 200 $ 200 $ 200 Liabilities and net worth: Checkable deposits Loans from the Federal Reserve Banks 2005 $ 283 2 Consolidated Balance Sheet: Bank of Canada Assets: Securities $283 283 Loans to commercial 215 21 S banks Liabilities and net worth Reserves of commercial 401 S banks Treasury deposits S S S Federal Reserve Notes 2255 225 $ 22 16 S 16 S 16 S 40 15 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? (Click to select)