.......... l "\"f'\"\"" _....,- 1.. u 2. Suppose the banking system is in equilibrium [the commercial banks are maximizing profits) with the following balance sheets [in millions of dollars}: Bank of Canada Assets Liabilities Government of Canada Bonds: 2,500 Reserves: 1500 Other Assets: 0 Currency: 1000 Consolidated Commercial Banks Assets Liabilities Loans 8: Securities: 8,400 Deposits: 10.000 Government of Canada Bonds: 500 Reserves: 2000 -with BoC: 1500 -cash in 1vault: 500 Capital: 900