3323ch21

3323ch21 - Chapter 21 Understanding Movements in Bank...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 21 Understanding Movements in Bank Reserves Balance Sheet Assets Liabilities Gold Certificate & SDR Federal Reserve Notes Loans Deposits Securities - Treasury (TD) - U.S. Government - Foreign (FD) - Agencies - Banks (R) - B.A. D.A.C.I CIPC Other Other G + L + S + F+ other misc. assets = C + TD + FD + R +Misc other liabilities & capital account F = Float (CIPC-DACI) R=G+L+S+F + Misc Other Assets -C-TD-FD- Misc other liabilities & capital account Determine/Evaluate Fed Policy Reserve Account Control of Reserve - Non Controllable factors - Solution Defensive vs Dynamic Operations Defensive-temporary adjustments Repurchase agreements Reverse Repos—matched sale-purchase agreements Dynamic Operations-policy decision Outright purchase or sales Immediate objective of Fed action referred to s the operating target Reserves Monetary base= total reserves + currency held by nonbank public Redefine Bank Reserve Equation as follows: (R+C)= G+L+S+F + Misc Other Assets -TD-FD- Misc other liabilities & capital account Monetary Base= G+L+S+F + Misc Other Assets -TD-FD- Misc other liabilities & capital account
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/09/2011 for the course FIN 3233 taught by Professor Frohlich during the Spring '11 term at UNF.

Page1 / 2

3323ch21 - Chapter 21 Understanding Movements in Bank...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online