1. The UAE Central Bank wants to conduct a matched sale purchase transaction for 20 million AED to be reversed in 15 days. Show the effect of this initial operation and the reverse operation on Central Bank balance sheet and Banking System Balance sheet using T-accounts. (Hint: There should be 4 t-accounts).

2. Suppose a bank in UAE borrows from the UAE Central Bank marginal lending facility 1 million AED. 30 days later it pays back the loan. Use T-accounts to show the effect of the transactions on the bank and Central Bank balance sheet. (Hint: There should be 4 taccounts).