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Scenario: The following table shows the initial balance sheets of Bank A and the Fed. Suppose that the Fed then buys $10 million in bonds

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Scenario: The following table shows the initial balance sheets of Bank A and the Fed. Suppose that the Fed then buys $10 million in bonds from Bank A. Bank A Assets Liabilities Bonds $100 million Deposits $90 million Reserves $20 million Shareholders' equity $30 million Total assets $120 million Total Liabilities $120 million The Fed Assets Liabilities Treasury bonds $400 million Reserves $ 500 million Other bonds $400 million Currency $ 300 million Total assets $800 million Total Liabilities $800 million Refer to the scenario above. After this transaction, the Fed's Treasury bonds equal

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