a$)$ Suppose that the Bank of Beckland buys $$1$ billion of government securities $($T$-$bills$)$ from the commercial banks, Show the

immediate effects of this transaction on the balance sheets in column $(1)$ of Tables $9\mathrm{.}1$A and

b$)$ What effect does this transaction have on the money supply of Beckland?

c$)$ What effect does the transaction have on the banking system's excess reserves?

d$)$ If the banks were to fully loan$-$up$,$ show the result in column $(2)$ of the banking system's balance sheet.

e$)$ By how much has money supply now changed?

Change in money supply: $+1=$

of $

LO $1)$ Assume that the original price of a $3-$month treasury bill with a redeemable value of $$100$ was $$96,$ and one month later it was

sold for $$96.$ What is the change in the rate of return on this bill?