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Balance sheet for Bank of Canada and Chartered Bank.

Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system. prepare down two balance sheets, one for BOC and other for chartered bank, elucidating the initial effect of Bank of Canada's purchase of bonds.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921396

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