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Examine the following T-account for a bank to answer questions 13 to 16. Assume a 10% minimum reserve requirement. Assets Liabilities + Net Worth Reserves
Examine the following T-account for a bank to answer questions 13 to 16. Assume a 10% minimum reserve requirement. Assets Liabilities + Net Worth Reserves $500 Deposits $5000 Bonds $1000 Loans ???? Net Worth $1000 Suppose the Fed wanted to increase the money supply by $1000 and will do so through open market operations. Assuming the money multiplier is in effect, what will the new value of bonds be in the T-account at this bank? Type your answer in dollars, rounding to the nearest whole number if necessary. For example, if the new value of bonds is $20.75, then type your answer as 21. Answer: Continuing from the previous question, what will the new value of reserves be in the T-account at this bank? Type your answer in dollars, rounding to the nearest whole number if necessary. For example, if the new value of reserves is $20.75, then type your answer as 21
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