Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed

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 change

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Audit And Assurance The Auditors Bible

Authors: Nhyira Premium IBL

1st Edition

B0BCXSXSJ7, 979-8829719432

More Books

Students also viewed these Accounting questions

Question

2. Outline the functions of nonverbal communication

Answered: 1 week ago