Question
Rio Tinto (transactional bank account at ANZ) issues $1,000,000 shares, which are bought by Westpac, an Australian bank. Rio Tinto buys a new $500,000 machine
Rio Tinto (transactional bank account at ANZ) issues $1,000,000 shares, which are bought by Westpac, an Australian bank. Rio Tinto buys a new $500,000 machine from the producer (transactional bank account at CBA).
a. Draw the flow of funds diagram withall parties, the share, the machine, the bank deposits creation and destruction, and ESF.
b. Is there a change in total amount of bank deposits in the economy? Is there a change in total amount of central bank deposits?
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The Economics Of The Environment
Authors: Peter Berck, Gloria Helfand
1st Edition
978-0321321664, 0321321669
