A. Suppose the Federal Reserve conducts Open Market Sales worth of $50 million. At the same time, it provides discount loans to the banking system as a whole worth of $10 million. The banking system has determined to hold reserve-to-deposit ratio of 20%. Non-bank public's currency-to-deposit ratio is 20%. The Fed has not issued/withdrawn any currency in circulation. 1. How will this change the Fed's balance sheet due to these open market operations and discount loans? Just show the appropriate changes in whichever items that would change such as +/- $5 etc. (Hint: check T account examples in notes/textbook) millions millions +10 -50 -48 Assets Loans to depository institutions Securities, Repos Gold Special Drawing rights Foreign currency Liabilities Federal Reserve notes Bank Reserves Treasury deposits Reverse Repo +2 Equity