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Suppose the ECCB purchases a Dominican gov't bond from you for $10,000 a. What is the name of the ECCB action (1mks) b. Suppose you

Suppose the ECCB purchases a Dominican gov't bond from you for $10,000

a. What is the name of the ECCB action (1mks)

b. Suppose you deposit the $10000 in First Student Bank (FSB). Show this transaction on FSB T-

account (2mks)

c. Suppose the reserve requirement is 20%. Show FSB T-account if they loan out as much as they

can (3mks)

d. At this point, how much money has been created from the central bank policy action? (2mks)

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