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these 2 go together! thank you! It's an economy with only two non-identical banks, called Bank One and Bank Two. In addition to this information,
these 2 go together! thank you! It's an economy with only two non-identical banks, called Bank One and Bank Two. In addition to this information, members of the public in this economy hold $2000 in cash, and there are no travelers' checks. Partial balance sheet information for each bank is given below: Bank One Cash in bank $3000 Equity (net worth) $2150 US government bonds $1650 Total savings deposits $14,000 Deposit in the Federal Reserve $5000 Total checking deposits $40,000 Bank Two: US government bonds $950 Total checking deposits $60,000 Cash in bank $2000 Deposit in the Fed $4000 Equity $1850 Total savings deposits $11,000 Now let's say the Fed does easy (expansionary) monetary policy via OMOs with Bank One only in the amount of $1000. . As a result of this transaction, calculate the economy's new monetary base by combining actual and potential reserves. It's an economy with only two non-identical banks, called Bank One and Bank Two. In addition to this information, members of the public in this economy hold $1500 in cash, and there are no travelers' checks. Partial balance sheet information for each bank is given below: Bank One Cash in bank $2000 Equity (net worth) $2150 US government bonds $1650 Total savings deposits $14,000 Deposit in the Federal Reserve $5000 Total checking deposits $40,000 . Bank Two: US government bonds $950 Total checking deposits $60,000 Cash in bank $2000 Deposit in the Fed $4000 Equity $1850 Total savings deposits $11,000 After the open market operation described in the previous question takes place, what will be Bank One's new excess reserves? Carefully follow all numeric instructions
these 2 go together! thank you!
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