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Below is a table which describes a transaction that the Federal Reserve took part in with Goldenrod Bank. Assets Change Liabilities Reserves 206 30 Deposits

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Below is a table which describes a transaction that the Federal Reserve took part in with Goldenrod Bank. Assets Change Liabilities Reserves 206 30 Deposits 600 Bonds 284 -30 Loans 1070 Net worth 676 Which monetary policy tool is this an example of OReserve requirement ODiscount rate Open market operations In this example, did the Federal Reserve buy bonds from or sell bonds to, Goldenrod Bank? Buy bonds Sell bonds None of the above Monocle Bank's assets consist of $6400 in reserves and $13600 in bonds. In terms of liabilities, they have $3000 in checkable deposits with their customers. This gives them a net worth of $17000, which is the value of assets (86400 + $13600) minus liabilities ($3000). The Federal Reserve conducts Open Market Operations by buying $2500 worth of bonds from Monocle Bank. By how much do Monocle Bank's reserves increase in order to conduct this policy? Calculate the change in Monocle Bank's net worth: Ariel, a small business owner is considering taking out a loan from Copperton Bank to finance a new project. Last month, Copperton Bank was offering a small-business special loan at 8% interest. But now, Copperton Bank has decreased the interest rate on the small-business special to 4.5% interest. Is Ariel more or less likely to apply for the loan, compared to before the interest rate on the loan decreased? OMore likely OLess likely ONeither

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