Amy sold her vehicle to Bob for $100,000 and deposited the money into ScotiaBank. Bob didn't...
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Amy sold her vehicle to Bob for $100,000 and deposited the money into ScotiaBank. Bob didn't have enough money, so he borrowed $100,000 from TD Canada Trust to make the vehicle purchase from Amy. Candice won $80,000 from the Scratch and Win lottery cards and deposited her winnings into TD Canada Trust. The Bank of Canada Set the desired/required reserve ratio for all banks to be 20% and there are no currency drain. a) How will the T-Account for TD Canada Trust change? b) How will the T-Account for ScotiaBank change? c) What is the level of required reserves TD Canada Trust must hold after Amy's deposit? d) What is the level of required reserves ScotiaBank must hold after Candice's deposit? e) Are the required reserves between TD Canada Trust and ScotiaBank the same? Explain why or why not. Amy sold her vehicle to Bob for $100,000 and deposited the money into ScotiaBank. Bob didn't have enough money, so he borrowed $100,000 from TD Canada Trust to make the vehicle purchase from Amy. Candice won $80,000 from the Scratch and Win lottery cards and deposited her winnings into TD Canada Trust. The Bank of Canada Set the desired/required reserve ratio for all banks to be 20% and there are no currency drain. a) How will the T-Account for TD Canada Trust change? b) How will the T-Account for ScotiaBank change? c) What is the level of required reserves TD Canada Trust must hold after Amy's deposit? d) What is the level of required reserves ScotiaBank must hold after Candice's deposit? e) Are the required reserves between TD Canada Trust and ScotiaBank the same? Explain why or why not.
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Related Book For
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker
Posted Date:
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