Use the information provided below to answer the following questions:

R^d = 50             CU^d = 250        D = 500

1. Calculate the reserve ratio (?).
2. Calculate the value of the parameter c (currency ratio).
3. Calculate the size of the monetary base H (high-power/central bank money).
4. Calculate the size of the money supply.
5. Calculate the money multiplier.
6. In the space below, fill in the   information about the bank's and central bank's balance sheets. Specifically, what is the dollar value of the bonds held by banks? What is the dollar value of the bonds held by the central bank?

Central Bank's Balance Sheet                            Banks' Balance Sheet

Assets                 Liabilities                                         Assets                Liabilities

g. Suppose the Bank of Canada wishes to increase the money supply by $100 million. What type of open market operation should it pursue? What should the dollar amount of the Bank’s purchase or sale of bonds be in order for M to increase by $100 million?