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Suppose you examine the central bank's balance sheet and observe that since the previous day, reserves had fallen by $100 million. In addition, on the
Suppose you examine the central bank's balance sheet and observe that since the previous day, reserves had fallen by $100 million. In addition, on the asset side of the central bank's balance sheet, securities had fallen by $100 million. Do you think the size of the banking system's balance sheet would be affected immediately by these changes to the central bank's balance sheet? Yes No Explain your answer. Reserves appear on the: side and securities appear on the side of the banking systern's balance sheet and so the changes would affect the of its balance sheet
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