Suppose the Bank of Canada sells $50,000 in bonds to Bank 1, and Bank 1 and...

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Suppose the Bank of Canada sells $50,000 in bonds to Bank 1, and Bank 1 and all other banks have no excess reserves prior to this purchase. a. What type of policy is this? A. Contractionary fiscal policy B. Expansionary fiscal policy C. Expansionary monetary policy D. Contractionary monetary policy E. None of the above b. What assets of the Bank of Canada change and by how much? Complete the second column of the following table by in each row entering "0" if the listed item is not an asset and/or does not change, a positive number representing an increase in an asset, or a negative number representing a decrease in an asset. (Do not include the $ symbol in your answers.) Cash and foreign deposits Bank notes in circulation Equity Government securities Government of Canada deposits Members of Payments Canada deposits (reserves) Advance to members of Payments Canada Change in Asset GA GA FA c. What liabilities of the Bank of Canada change and by how much? Complete the second column of the following table by in each row entering "0" if the listed item is not a liability and/or does not change, a positive number representing an increase in a liability, or a negative number representing a decrease in a liability. (Do not include the $ symbol in your answers.) Cash and foreign deposits Bank notes in circulation Equity Government securities Government of Canada deposits Members of Payments Canada deposits (reserves) Advance to members of Payments Canada Change in Liability $ GA GA SA SA FA d. What assets of Bank 1 change and by how much? Complete the second column of the following table by in each row entering "0" if the listed item is not an asset and/or does not change, a positive number representing an increase in an asset, or a negative number representing a decrease in an asset. (Do not include the $ symbol in your answers.) Change in Asset Reserves Deposits Securities Loans Borrowing from Bank of Canada FA GA $ GA GA e. What liabilities of Bank 1 change and by how much? Complete the second column of the following table by in each row entering "0" if the listed item is not a liability and/or does not change, a positive number representing an increase in a liability, or a negative number representing a decrease in a liability. (Do not include the $ symbol in your answers.) e. What liabilities of Bank 1 change and by how much? Complete the second column of the following table by in each row entering "0" if the listed item is not a liability and/or does not change, a positive number representing an increase in a liability, or a negative number representing a decrease in a liability. (Do not include the $ symbol in your answers.) Change in Liability Reserves Deposits Securities Loans Borrowing from Bank of Canada GA FA GA SA GA f. If the desired reserve ratio for Bank 1 and all other banks is 4 percent, then the maximum reduction in lending Bank 1 will implement is $ (Enter your response as a whole number. Do not include the $ symbol in your answer.) g. What assets of Bank 1 will change when it implements this reduction in lending? Complete the second column of the following table by in each row entering "0" if the listed item is not an asset and/or does not change, a positive number representing an increase in an asset, or a negative number representing a decrease in an asset. (Do not include the $ symbol in your answers.) Reserves Deposits Securities Loans Borrowing from Bank of Canada Change in Asset GA SA SA GA What liabilities of Bank 1 will change when it implements this reduction in lending? Complete the second column of the following table by in each row entering "0" if the listed item is not a liability and/or does not change, a positive number representing an increase in a liability, or a negative number representing a decrease in a liability. (Do not include the $ symbol in your answers.) Reserves Deposits Securities Loans Borrowing from Bank of Canada Change in Liability GA GA h. The maximum change in the money supply the entire chartered banking system will implement due to the Bank of Canada's sale of the bonds is $. (Type a positive number to represent an increase in the money supply or a negative number to represent a decrease in the money supply. Do not include the $ symbol in your answer.) Suppose the Bank of Canada sells $50,000 in bonds to Bank 1, and Bank 1 and all other banks have no excess reserves prior to this purchase. a. What type of policy is this? A. Contractionary fiscal policy B. Expansionary fiscal policy C. Expansionary monetary policy D. Contractionary monetary policy E. None of the above b. What assets of the Bank of Canada change and by how much? Complete the second column of the following table by in each row entering "0" if the listed item is not an asset and/or does not change, a positive number representing an increase in an asset, or a negative number representing a decrease in an asset. (Do not include the $ symbol in your answers.) Cash and foreign deposits Bank notes in circulation Equity Government securities Government of Canada deposits Members of Payments Canada deposits (reserves) Advance to members of Payments Canada Change in Asset GA GA FA c. What liabilities of the Bank of Canada change and by how much? Complete the second column of the following table by in each row entering "0" if the listed item is not a liability and/or does not change, a positive number representing an increase in a liability, or a negative number representing a decrease in a liability. (Do not include the $ symbol in your answers.) Cash and foreign deposits Bank notes in circulation Equity Government securities Government of Canada deposits Members of Payments Canada deposits (reserves) Advance to members of Payments Canada Change in Liability $ GA GA SA SA FA d. What assets of Bank 1 change and by how much? Complete the second column of the following table by in each row entering "0" if the listed item is not an asset and/or does not change, a positive number representing an increase in an asset, or a negative number representing a decrease in an asset. (Do not include the $ symbol in your answers.) Change in Asset Reserves Deposits Securities Loans Borrowing from Bank of Canada FA GA $ GA GA e. What liabilities of Bank 1 change and by how much? Complete the second column of the following table by in each row entering "0" if the listed item is not a liability and/or does not change, a positive number representing an increase in a liability, or a negative number representing a decrease in a liability. (Do not include the $ symbol in your answers.) e. What liabilities of Bank 1 change and by how much? Complete the second column of the following table by in each row entering "0" if the listed item is not a liability and/or does not change, a positive number representing an increase in a liability, or a negative number representing a decrease in a liability. (Do not include the $ symbol in your answers.) Change in Liability Reserves Deposits Securities Loans Borrowing from Bank of Canada GA FA GA SA GA f. If the desired reserve ratio for Bank 1 and all other banks is 4 percent, then the maximum reduction in lending Bank 1 will implement is $ (Enter your response as a whole number. Do not include the $ symbol in your answer.) g. What assets of Bank 1 will change when it implements this reduction in lending? Complete the second column of the following table by in each row entering "0" if the listed item is not an asset and/or does not change, a positive number representing an increase in an asset, or a negative number representing a decrease in an asset. (Do not include the $ symbol in your answers.) Reserves Deposits Securities Loans Borrowing from Bank of Canada Change in Asset GA SA SA GA What liabilities of Bank 1 will change when it implements this reduction in lending? Complete the second column of the following table by in each row entering "0" if the listed item is not a liability and/or does not change, a positive number representing an increase in a liability, or a negative number representing a decrease in a liability. (Do not include the $ symbol in your answers.) Reserves Deposits Securities Loans Borrowing from Bank of Canada Change in Liability GA GA h. The maximum change in the money supply the entire chartered banking system will implement due to the Bank of Canada's sale of the bonds is $. (Type a positive number to represent an increase in the money supply or a negative number to represent a decrease in the money supply. Do not include the $ symbol in your answer.)

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a The action described is the Bank of Canada selling bonds to Bank 1 This is a monetary policy action specifically an expansionary monetary policy So ... View the full answer