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1 5. Complete Slides 16-19; Managing Liquidity using the different options Continuing with Case 2 in Question 4 above, show how reserves are restored. Also

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5. Complete Slides 16-19; Managing Liquidity using the different options Continuing with Case 2 in Question 4 above, show how reserves are restored. Also write out or explain the costs that are associated with each option as discussed in lecture. 1. Borrow from other financial institutions Cost: 2. Sell Securities Cost: 3. Borrow from the FED (at discount window) 4. Sell Loans Cost: Cost

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