This question is from my test (Canada)

Suppose the Bank of Canada lends $1 million to the First National Bank.

(a) For the initial effect of the loans, show what happens to the Bank of Canada and the banking system using T-accounts.

(b) Suppose the commercial banks in the banking system do not hold excess reserve (i.e., all excess reserves are loaned out). Through multiple deposit creation, eventually the increase in reserves of the banking system will support $10 million in new loans and chequable deposits. Using T-accounts, show the final effect of the multiple deposit creation for the Bank of Canada and the banking system.

This is my answer..but I am not so sure these are correct.

a)

When the Bank of Canada makes a $1M loan to the first National Bank, The bank is credited with 1M of reserves from the proceeds of the loan.

Monetary liabilities of the Bank of Canada have increased by $ 1M and Monetary base also increases by this amount

B)

Banking System			Bank of Canada
Assets	Liabilities		Assets	Liabilities
Securities -1 M	Chequable Deposit + 10M		Loan From Bank of Canada + 1 M	Reserves + 1 M
Reserves +1 M
Loans + 10 M

Banking System Assets Liabilities Loan From Bank of Reserves + 1 M Canada +1 M Bank of Canada Assets Liabilities Loan From Bank of Reserves + 1 M Canada +1 M Banking System Assets Liabilities Loan From Bank of Reserves + 1 M Canada +1 M Bank of Canada Assets Liabilities Loan From Bank of Reserves + 1 M Canada +1 M