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Using simplified balance sheets below, suppose a commercial bank wants to purchase $600,000 of government securities from the Bank of Canada, which willingly sells them
Using simplified balance sheets below, suppose a commercial bank wants to purchase $600,000 of government securities from the Bank of Canada, which willingly sells them Commercial Bank Assets Liabilities Reserves Deposits Bonds Assets Bonds Bank of Canada Liabilities Commercial bank deposits Currency a. The immediate change in the commercial bank's assets is $(Round your response to the nearest dollar) b. The immediate change in the assets and liabilities (individually) of the Bank of Canada is $(Round your response to the nearest dollar) c. The amount of currency in circulation has
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