Question
Answer the following question: Support your answer. Monetary Policy and Central Banking Prepare balance sheets with these given data: Assuming that the central bank only
Answer the following question:
Support your answer.
Monetary Policy and Central Banking
Prepare balance sheets with these given data: Assuming that the central bank only supervises 3 banks, BANK A,B and C. Company A withdraws 5,000,000 from Bank A and deposits to Bank B and C 2,000,000 and 3,000,000 respectively. Bank A's total NBPS deposit is 5,000,000,000 while Bank B and C are 6,000,000,000 each. Bank A shall loan 5,000,000 worth of Reserves. Bank A shall loan to Bank B, 2,000,000 and 3,000,000 to bank C.
Reference: The Interbank Market (Lesson 3)
https://www.youtube.com/watch?v=ekeV0Hip-VM
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