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Victorian Bank's assets consist of $5600 in reserves and $13600 in bonds, In terms of libabilities, they have $7200 in checkable deposits with their customers.
Victorian Bank's assets consist of $5600 in reserves and $13600 in bonds, In terms of libabilities, they have $7200 in checkable deposits with their customers. This gives them a net worth of $12000. which is the value of assets ($5600 + $13600) minus liabilities ($7200). The Federal Reserve conducts Open Market Operations by buying $2000 worth of bonds from Victorian Bank. By how much do Victorian Bank's reserves increase in order to conduct this policy? Calculate the change in Victorian Bank's net worth
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