Question
You have the following condition in the Banking System (see exhibit 3.2 of chapter 3) Assets Liabilities Reserves $60 Deposits $600 Loans $540 Total $600
You have the following condition in the Banking System (see exhibit 3.2 of chapter 3)
| Assets | Liabilities |
| Reserves $60 | Deposits $600 |
| Loans $540 | |
| Total $600 | Total $600 |
How much the total liabilities (or assets) can potentially increase in the banking system if the Fed buys $20 in government securities in an open-market transaction.
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The Finance Book
Authors: Stuart Warner, Si Hussain
1st Edition
1292123648, 978-1292123646
