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i need help bad please and thank you ill upvote Ignore all those things that happened in previous questions. Start from the Base Case. You

i need help bad please and thank you ill upvote image text in transcribed
Ignore all those things that happened in previous questions. Start from the Base Case. You will see the application of this question in a later chapter. Bank A decides to have more Treasury bonds and fewer reserves. This is perhaps because the interest rates on Treasury bonds have increased. The bank buys $20,000 worth of bonds from a seller and pays for them by giving the seller a check for that amount. The seller is a member of the non-bank public. The seller deposits the check in Bank B. After all the interbank settlements and transfers, the entries in the two balance sheets will look like the following: Bank.A Bank B Total Deposits = Reserves = dollars Treasury Bonds = dollars Banking System (Bank A + Bank B) Total reserves in the banking system before Bank A's purchase of bonds = dollars Total reserves in the banking system after Bank A's purchase of bonds = dollars Ignore all those things that happened in previous questions. Start from the Base Case. You will see the application of this question in a later chapter. Bank A decides to have more Treasury bonds and fewer reserves. This is perhaps because the interest rates on Treasury bonds have increased. The bank buys $20,000 worth of bonds from a seller and pays for them by giving the seller a check for that amount. The seller is a member of the non-bank public. The seller deposits the check in Bank B. After all the interbank settlements and transfers, the entries in the two balance sheets will look like the following: Bank.A Bank B Total Deposits = Reserves = dollars Treasury Bonds = dollars Banking System (Bank A + Bank B) Total reserves in the banking system before Bank A's purchase of bonds = dollars Total reserves in the banking system after Bank A's purchase of bonds = dollars

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