9 in carrying out open market operations the federal

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Chapter 12 / Exercise 12.34
Statistics for Management and Economics + XLSTAT Bind-in
Keller
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9. In carrying out open market operations, the Federal Reserve buys and sells U.S. Treasury securities. Suppose the U.S. government paid off all its debt. Could the Federal Reserve continue to carry out open market operations?
10. In which of the following cases will the size of the central bank’s balance sheet change? a. The Federal Reserve conducts an open market purchase of $100 million US treasury securities b. A commercial bank borrows $100 million from the Federal Reserve c. The amount of cash in the vaults of commercial banks falls by $100 due to withdrawals by the public.
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Chapter 12 / Exercise 12.34
Statistics for Management and Economics + XLSTAT Bind-in
Keller
Expert Verified
11. You are an economic adviser to a country whose central bank has recently been granted the power to conduct monetary policy. The central bank is considering increasing reserve requirements in an effort to ensure the stability of the banking system and seeks your advice. What factors would you recommend the central bank take into account when trying to predict the impact of such a policy?

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