1. Suppose the Central Bank has just announced a higher overnight interest rate, thereby decreasing the desire for new loans. A commercial bank is holding excess reserves and wants to buy $46,000 of government bonds from the CB (which they are willing to sell).  a. What is the immediate change in the Central Bank’s assets and liabilities?  b. What is the immediate change in the commercial bank’s assets?

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter13: The Federal Reserve System
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Hi, can someone help me with this question?

Thank you in advance.

1. Suppose the Central Bank has just announced a higher overnight interest rate, thereby decreasing the desire for new loans. A commercial bank is holding excess reserves and wants to buy $46,000 of government bonds from the CB (which they are willing to sell). 

a. What is the immediate change in the Central Bank’s assets and liabilities? 

b. What is the immediate change in the commercial bank’s assets?

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