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5. Here are balance sheets for the commercial banking system and the Federal Reserve Banks in $ billions. R =10%. Perform each of the transaction
5. Here are balance sheets for the commercial banking system and the Federal Reserve Banks in $ billions. R =10%. Perform each of the transaction relative to column (0). (1) Fed sells $2 billion of securities from banks. Show new figures in column 1. The change in commercial bank reserves is $ billion and the change in the money-creating potential of the banking system is $ billion (2) Commercial banks borrow additional \$2 billion for FED. Show new figures in column 2. The change in commercial bank reserves is $ I potential of the banking system is $ . billion and the change in the money-creating Consolidated Balance Sheet: Banking System billion
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