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Suppose that a bank's balance sheet contains the following information: reserves $30, bonds $50, loans $250, deposits $300 and equity $30 (amounts in million). If

Suppose that a bank's balance sheet contains the following information: reserves $30, bonds $50, loans $250, deposits $300 and equity $30 (amounts in million). If the FOMC conducts an open market sale for $5 million, what 2 options does the bank have to restore the required reserve of 10%? Sketch the balance sheet for both options.

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