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Business, 03.04.2020 17:46 delphinelilly2846

Show how each of the following initially affects bank assets, liabilities, and reserves. Do not include the results of bank behavior resulting from the Fed’s action. Assume a required reserve ratio of 0.05. a. The Fed purchases $10 million worth of U. S, government bonds from a bank. b. The Fed loans $5 million to a bank. c. The Fed raises the required reserve ratio to 0.10.

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Show how each of the following initially affects bank assets, liabilities, and reserves. Do not incl...

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