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{"ops":[{"insert":"(a)\tSuppose the Fed purchases $100 million of bonds from a primary dealer. Show the changes that occur in balance sheet items by using T-accounts the consequences of this transaction starting from the initial balance sheet position for: \nI.\tBanking system\nII.\tFederal reserve\n\n(b)\tSuppose the Fed conducts an open market sale of $100 million of bonds to a primary dealer, show the balance sheet for Federal Reserve. \n\n(c)\tDuring the Christmas season, the public wants to hold more currency to buy gifts and so withdraws $100 million in cash, show the effect on the T-account:\nI.\tNon- public bank\nII.\tBanking system \nIII. Federal reserve\n"}]}
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