Use commercial bank and Federal Reserve Bank balance sheets to demonstrate the immediate effect of each of the following transactions on commercial bank reserves. Assume that the initial reserve ratio is 20 percent. Fill in the new balance in the column in the balance sheet that corresponds with each of the following transactions. Consider each transaction separately, not cumulatively. (A) Federal Reserve Banks purchase $2 billion worth of securities from banks. (B) Commercial banks borrow $1 billion from Federal Reserve Banks at the discount rate. (C) The Fed reduces the reserve ratio from 20 percent to 19 percent.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Use commercial bank and Federal Reserve Bank balance sheets to demonstrate the immediate effect of each of the following transactions on ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Warner Furniture Center had accounts receivable of $ 26 comma 000 at the beginning of the year and $ 55 comma 000 at year-end. Revenue for the year totaled $ 118 comma 000. How much cash did the business collect from customers?
Answers (1)
True or false? a. the total public debt is more relevant to an economy than the public debt as a percentage of gdp. b. an internally held public debt is like a debt of the left hand owed to the right hand. c.
Answers (1)
Which of the following activities is NOT part of the 5-S approach? a. Standardize to establish accountability for ongoing cleaning. b. Shorten the process cycle time. c. Sustain the effort through consistent attention. d.
Answers (1)
Which of the following conditions is most likely to act as a deterrent for foreign firms willing to do business with former Communist nations of East Europe and central Asia? a. The high levels of economic development in these countries b.
Answers (1)
Raxon Company borrowed $40,000 from the bank signing a 6%, 3-month note on September 1. Principal and interest are payable to the bank on December 1.
Answers (1)
New Questions in Business
During the year, total liabilities increased $105,000 and stockholders' equity decreased $83,000. What is the amount of total assets at the end of the year?
Answers (1)
What is cosideration
Answers (1)
With the federal funds rate near zero and the economy still struggling, the Fed began buying 10-year Treasury notes and certain mortgage-backed securities to keep interest rates low. This policy is known as
Answers (1)
Sugar, Inc. sells $529,300 of goods during the year that have a cost of $428,600. Inventory was $30,083 at the beginning of the year and $34,338 at the end of the year.
Answers (2)
Assume that Jack and Hal and Sophia enter into a contract for the sale of the restaurant. Hal and Sophia, for their own protection, put a clause in the contract that says the sale is contingent upon an independent appraisal indicating that the
Answers (2)