The Federal Reserve System sell $200 government bonds to a commercial bank. The commercial bank pay...
The Federal Reserve System sell $200 government bonds to a commercial bank. The commercial bank pay by vault cash. How is it going to change the Federal Reserve’s balance sheet?
| Banking System | ||
| Assets | Liabilities | |
| Securities | ||
| Reserves |
| Federal Reserve System | |||
| Assets | Liabilities | ||
| Securities | Reserves |
Homework Answers
The $200 sale of securities by Fed to commercial bank will decrease Securities by $200 and increase Reserves by $200 for Fed, and decreases Reserves by $200 and increase Securities by $200 for banking system.
| Banking System | ||
| Assets | Liabilities | |
| Securities | + 200 | |
| Reserves | - 200 |
| Federal Reserve System | |||
| Assets | Liabilities | ||
| Securities | - 200 | Reserves | + 200 |
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The Federal Reserve System sell $200 government bonds to a
commercial bank. The commercial bank pay...
The simplified consolidate balance sheet shown below is for the entire commercial banking system....
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The simplified consolidate balance sheet shown below is for the entire commercial banking system. All figures...
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Bank Three currently has $600 million in transaction deposits on its balance sheet. The Federal Reserve...
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In the tables that follow you will find consolidated balance sheets for the commercial banking system...
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