Question 7 Assets Securities (A) Loans to Banks (C) The Fed Liabilities and Net Worth Currency in Circulation (B) Reserves (D) Banks Liabilities and Net Worth Assets Reserves (E) Securities (G) Deposits (F) Borrowings (H) Loans (I) Bank Capital (J) Non-Bank Public Assets Liabilities and Net Worth Currency in Circulation (K) Loans (L) Deposits (M) Securities (N) Net Worth (O) 0.67 / 1 pts The above figure shows the three balance sheets by the players in the money supply process. These are aggregate balance sheets. For example, the deposits in the non- bank-public balance sheet is the sum of all the deposits owned by individuals and businesses. An event occurs. You need to figure out which one of the above entries will change as a result of this event, all else the same. Consider only the immediate effects. Don't assume any subsequent decisions by the players. Place a 1 in the box if the entry will change, 0 otherwise. No commas or decimals, just O and 1. Event: The Fed extends $100 million of discount loans to banks. The Fed A = 0 B = 0 .C = 1 D= 0 Banks E = 0 0 Non-Bank Public K = 0 0 F = 0 |= 1 G= 0 H= J= 0 L = 1 M= 0 N= 0