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The bank of Japan's purchases of Japanese government bonds would (increase/decrease) Securities on the (asset/liabilit...

The bank of Japan's purchases of Japanese government bonds would (increase/decrease) Securities on the (asset/liability) side and (increase/decrease) reserves on the (asset/liability) side of its balance sheet.
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Answers: Increase , assets , increase , liability

When Japanese bank purchase government bonds it means it is paying the amount and owning the bonds which is a security, that means there is an increase in security value at asset side. As I am paying my reserve amount to purchase bonds which means by reserve money also increase on liability as I am using the money to buy bonds. So the money which I am pay bonds is also my reserve amount hence it increase.

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