Suppose the balance sheet for Bank ABC is as given below, where numbers are in thousands of dollars. Assume that reserves are 10 percent of deposits and that people hold no currency. (A) Suppose the Feceral Reserve sell $20,00 warth of guverment bands to Jae, a private citizen and Jae writes a check to the Fed fram his checking accaunt at Bark $\mathbf { A B C }$. Show haw Joe's purchase changes the balance sheet above. (
B) Is Bank ABC meeting its reserve requirements? Eoglain. (
C) If bonds are fixed what has to happen to loans? Exgulain. (
D) What happens to the money supply in the economy as a result of Jae's purchase?

Question

Suppose the balance sheet for Bank ABC is as given below, where numbers are in thousands of dollars. Assume that reserves are 10 percent of deposits and that people hold no currency.  (A) Suppose the Feceral Reserve sell $20,00 warth of guverment bands to Jae, a private citizen and Jae writes a check to the Fed fram his checking accaunt at Bark $\mathbf { A B C }$. Show haw Joe's purchase changes the balance sheet above. (
B) Is Bank ABC meeting its reserve requirements? Eoglain. (
C) If bonds are fixed what has to happen to loans? Exgulain. (
D) What happens to the money supply in the economy as a result of Jae's purchase?

Quizplus · Accepted Answer

The Answer of Suppose the balance sheet for Bank ABC is as given below, where numbers are in thousands of dollars. Assume that reserves are 10 percent of deposits and that people hold no currency.  (A) Suppose the Feceral Reserve sell $20,00 warth of guverment bands to Jae, a private citizen and Jae writes a check to the Fed fram his checking accaunt at Bark $\mathbf { A B C }$. Show haw Joe's purchase changes the balance sheet above. (
B) Is Bank ABC meeting its reserve requirements? Eoglain. (
C) If bonds are fixed what has to happen to loans? Exgulain. (
D) What happens to the money supply in the economy as a result of Jae's purchase?

Suppose the Balance Sheet for Bank ABC Is as Given ABC\mathbf { A B C }ABC

Suppose the Balance Sheet for Bank ABC Is as Given $\mathbf { A B C }$