4. What is the impact of each of the following transactions on commercial bank reserves? LO2 a....

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4. What is the impact of each of the following transactions on commercial bank reserves? LO2

a. The New York Federal Reserve Bank purchases government securities from private businesses and consumers.

b. Commercial banks borrow from Federal Reserve Banks at the discount rate.

c. The Fed reduces the reserve ratio.

d. Commercial banks borrow from Federal Reserve Banks after winning an auction held as part of the term auction facility.

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