Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

4. Use the balance sheets to analyze the effects of open market operations. (5 marks)
(a) Suppose a central bank bought a $10,000 bond from a commercial bank, and to finish this transaction, the central bank put a credit of $10,000 into the commercial bank's account with the central bank in exchange for bonds. What changes happen to the central bank's balance sheet? What changes happen to the commercial bank's balance sheet?
(b) Suppose a central bank bought a $10,000 bond from the public (any nonbank), and that nonbank seller of bonds keeps the proceeds as cash. What happens to the central bank's balance sheet? What happens to the nonbank's balance sheet?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91227844

Have any Question?


Related Questions in Microeconomics

Question give an original concise but thorough answer to

Question: Give an original concise but thorough answer to the following questions. a. Compare the shareholder and stakeholder models of corporate governance. Which one seems to predominate today? What implications does t ...

Question discuss the concepts of engineering projects and

Question: Discuss the concepts of engineering projects and their investment profile. How would you assess the economic feasibility of engineering projects in your organization? Give examples from your organization to sup ...

Question suppose you want to put a dollar value on the

Question: Suppose you want to put a dollar value on the external costs of carbon emissions from a power plant. What information or data would you obtain to measure the external [not social] cost? The response must be typ ...

Question discuss the advantages and disadvantages of

Question: Discuss the advantages and disadvantages of maintaining multiple manufacturing sites as a hedge against exchange rate exposure. The response must be typed, single spaced, must be in times new roman font (size 1 ...

Question the united states economy is experiencing a

Question: The United States economy is experiencing a moderate economic downturn. The Republican President has addressed the downturn using stereotypical Republican methods. The economy failed to improve significantly, a ...

Questions -how does the fda face the problem of scarcitydo

Questions - How does the FDA face the problem of scarcity? Do you think that the FDA is making good choices in the face of scarcity? Explain the trade-off that the FDA faces.

Question compile a list of strategies that have been

Question: Compile a list of strategies that have been identified as sources of McDonald's success. Then see which of its successful (and unsuccessful) competitors have also used these strategies. The response must be typ ...

Question analyze the effect of an interest rate decrease on

Question: Analyze the effect of an interest rate decrease on a consumer who is currently a lender. Specifically, answer the following questions. A graph would be useful in your analysis. a. What happens to consumption to ...

Question discuss the nature of the alliance between the

Question: Discuss the nature of the alliance between the Soviet Union and the Western powers (US and Britain) during the Second World War and how this affected the strategy of the war. Why were the Soviets and the Americ ...

Question consider two countries south korea and taiwan

Question: Consider two countries: South Korea and Taiwan. Taiwan can produce one million mobile phones per day at the cost of $10 per phone and South Korea can produce 50 million mobile phones at $5 per phone. Assume the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved