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Hello does anyone knows how to do this thank you! Securities - US Treasuries - Mortgage Securities - Loans Gold Certificates SDR Certificates Coins Foreign

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to do this thank you! image text in transcribed
Securities - US Treasuries - Mortgage Securities - Loans Gold Certificates SDR Certificates Coins Foreign Currency Assets Other Assets Federal Reserve Notes in Circulation Rev Repos Deposits - Member Bank Accts - US Treasury Acct - Foreign Agency Accts - Other Other Liabilities (+ Capital) Assets Liabilities Federal Notes in Circulation = Fed Notes Held by Public + Fed Notes Held by Member Banks Coins Coins Purchased from US Treasury - Coins Held by Public - Coins Held by Member Banks Vault CashFed Notes Held by Member Banks + Coins Held by Member Banks Member Bank Reserves - Member Bank Accts + Vault Cash Use the FED balance sheet above to explain the following: 1) How does paying Federal Government spending increase Member Bank Reserves, and therefore increase money available to spend in the economy? 2) How does paying Federal income taxes destroy Member Bank Reserves and therefore reduce money available to spend in an economy? 3) How does the FED increase the FED Funds rate? Use a T-account ledger to show how banks create money by making loans. What role does Member Bank Reserves play in the money creation process

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