| Question | Consider the of the Fed in Table 24-1.Construct a corresponding for banks (like the one in Table 23-3 in the previous chapter) assuming that reserve requirements are 10 percent on checking accounts and zero on everything else. a. Construct a new set of balance sheets, assuming that the Fed sells $1 billion worth of government securities through open-market operations. b. Construct another set of balance sheets, assuming that the Fed increases reserve requirements from 10 to 20 percent. c. Assume that banks borrow $1 billion worth of reserves from the Fed. How will this action change the balance sheets? |
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| Subject | business economics |
