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Question 15 The above table shows a part of the balance sheet for a bank. The required reserve ratio is 10% and banking system is

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Question 15 The above table shows a part of the balance sheet for a bank. The required reserve ratio is 10% and banking system is fully loaned out. The Federal Reserve Bank makes an open market purchase worth $10. Which of the following balance sheets would be the correct balance sheet immediately after this purchase and before the banks lend out the money? Balance Sheet A Assets Liabilities and Net Worth Reserves $30 Deposits $200 Treasury Bonds $30 Borrowing $50 Loans $250 Net Worth $60 Balance Sheet B Assets Liabilities and Net Worth Reserves $30 Deposits $200 Treasury Bonds $30 Borrowing $40 Loans $250 Net Worth $70 Balance Sheet C Assets Liabilities and Net Worth Reserves $30 Deposits $200 Treasury Bonds $30 Borrowing $40 Loans $240 Net Worth $60 Balance Sheet D Assets Liabilities and Net Worth Reserves $30 Deposits $200 Treasury Bonds $20 Borrowing $40 Loans $240 Net Worth $60 A. Balance sheet A B. Balance sheet B C. Balance sheet C D. Balance sheet D E. None of the above

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