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kozerog [31]
2 years ago
13

If the Fed sells​ $2 million of bonds to the First National​ Bank, what happens to reserves and the monetary​ base?

Business
1 answer:
Sindrei [870]2 years ago
4 0

Answer:

Reserves fall by $2 million, and the monetary base falls by $2 million.

Explanation:

In the books of First National​ Bank, the purchase of $2 million of bonds by First National​ Bank, from the Federal Reserve means there is a reserve with the Federal Reserve represented by security which stands as asset.

In the books of the Federal Reserve, The sales of bonds to First National​ Bank will create a liability from the reserve assets.

See attached for the T-accounts explain the answer    

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Stelwire LLC, a vintage car dealer, advertises the sale of a 1964 Ford Thunderbolt. Ralph
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Answer:

A) firm offer rule

Explanation:

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3 years ago
In 2020, Pharoah Company reported a discontinued operations loss of $1120000, net of tax. It declared and paid preferred stock d
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7 0
3 years ago
Grandfather clocks have a particular market in auctions. One theory about the price at an auction is that it is higher when ther
anastassius [24]

Answer:

t value is 1.495

Explanation:

The null and alternative hypothesis are :

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test statistics:

s = 411.53, n = 14

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Fail to reject H0

5 0
3 years ago
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