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I want to know the answer:) This is about balance sheet. Balance sheet of Central bank $) central bank Assets liabilities 50 100 government loan
I want to know the answer:)
This is about balance sheet.
Balance sheet of Central bank $) central bank Assets liabilities 50 100 government loan bank loan 0 monetary base government deposit overseas debt 100 100 overseas asset 2000 government bond or other assets 250 other debt or capital 2000 *C/D = 0.3 *Excess reserves/deposits = 0.1 *required reserve ratio = 0.1 *there is only 1 overseas market () (a)Central bank use 100$ to buy from overseas market, and use all the money to buy US government bond, How will the central bank's balance sheet change? (b) How much currency will increase? How much is the increased deposits? If there is only one private bank, how will the private bank's balance sheet change? (C) Let's say that central bank issued monetary stabilization bond in order to recover increased currency. How will the central bank's balance sheet change? Windo (D) Let's say that exchange rate decreased by 10%. Every elements are assessed [] to $. How will the central bank's balance sheet change? How the currency change? Balance sheet of Central bank $) central bank Assets liabilities 50 100 government loan bank loan 0 monetary base government deposit overseas debt 100 100 overseas asset 2000 government bond or other assets 250 other debt or capital 2000 *C/D = 0.3 *Excess reserves/deposits = 0.1 *required reserve ratio = 0.1 *there is only 1 overseas market () (a)Central bank use 100$ to buy from overseas market, and use all the money to buy US government bond, How will the central bank's balance sheet change? (b) How much currency will increase? How much is the increased deposits? If there is only one private bank, how will the private bank's balance sheet change? (C) Let's say that central bank issued monetary stabilization bond in order to recover increased currency. How will the central bank's balance sheet change? Windo (D) Let's say that exchange rate decreased by 10%. Every elements are assessed [] to $. How will the central bank's balance sheet change? How the currency changeStep by Step Solution
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