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I just need help with the word problem sections but heres all the info i have so far. Check my work In the tables that

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I just need help with the word problem sections but heres all the info i have so far.
Check my work In the tables that follow you will find consolidated balance sheets for the commercial banking system and the 12 Federal Reserve Banks. Use columns 1 through 3 to indicate how the balance sheets would read after each of transactions a to cis completed. Do not cumulate your answers, that is, analyze each transaction separately, starting in each case from the numbers provided. All accounts are in billions of dollars. Instructions: Enter your answers as a whole number Consolidated Balance Sheet: All Commercial Banks 2 Assets: $34 40 $ Reserves Securities Loans $ $ 26 $ 58 $ 58 51 58 $ 62 S 52 5 $ 621 Llabilities and net worth: $150 150 Checkable deposits Loans from the Federal Reserve Banks $ $ 150 $ 10 $ 142 $ 4 $ Consolidated Balance Sheet: 12 Federal Reserve Banks 2 Assets Securities 500 $ 00 $ Loans to commercial banks 4 5 10 $ 67 52 s 45 4 Liabilities and net worth: U a. A decline in the discount rate prompts commercial banks to borrow an additional S1 billion from the Federal Reserve Banks. Show the new balance sheet numbers in column 1 of each table. b. The Federal Reserve Banks sell $3 billion in securities to members of the public, who pay for the bonds with checks. Show the new balance sheet numbers in column 2 of each table. C. The Federal Reserve Banks buy $2 billion of securities from commercial banks. Show the new balance sheet numbers in column 3 of each table. d. Now review each of the above three transactions, asking yourself these three questions: (1) What change, if any, took place in the money supply as a direct and immediate result of each transaction? (2) What increase or decrease in the commercial banks' reserves took place in each transaction? (3) Assuming a reserve ratio of 20 percent, what change in the money-creating potential of the commercial banking system occurred as a result of each transaction? Transaction a (1) The money supply did not change 3 (2) Reserves increased from $34 billion to $ 40 billion. (3) The money creating potential Click to select) by $ billion Transaction b: (1) The money supply decreased by $ billion (2) Reserves Click to select from $34 billion to $ billion. (3) The money creating potential Click to select) by $ billion. Transaction (1) The money supply click to select). 121 Recerves link in salaril from $24 hillinn tn billion 1 Check my work balance sheet numbers in column 2 of each table. The Federal Reserve Banks buy $2 billion of securities from commercial banks. Show the new balance sheet numbers in column 3 of each table. d. Now review each of the above three transactions, asking yourself these three questions: () What change, If any, took place in the money supply as a direct and immediate result of each transaction? (2) What increase or decrease in the commercial banks' reserves took place in each transaction? (3) Assuming a reserve ratio of 20 percent, what change in the money creating potential of the commercial banking system occurred as a result of each transaction? Transaction as (1) The money supply did not change 3 (2) Reserves increased from $34 billion to $ 40 billion (3) The money creating potential Click to select) by $ billion Transaction b: (1) The money supply decreased by billion. (2) Reserves Click to select from $34 billion to $ billion billion (3) The money-creating potential Click to selven) by $ Transactions (1) The money supply click to selecte 2) Reserves cellek to select from $34 billion to $ (3) The money-creating potential Cliek te siect by $ billion billion

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