Goldenrod Bank's assets consist of $5600 in reserves and $14800 in bonds. In terms of liabilities, they have $8400 in checkable deposits with their customers. This gives them a net worth of $12000, which is the value of assets ($5600+ $14800) minus liabilities ($8400). The Federal Reserve conducts Open Market Operations by buying $3000 worth of bonds from Goldenrod Bank. By how much do Goldenrod Bank's reserves increase in order to conduct this policy? $ Calculate the change in Goldenrod Bank's net worth: $

Goldenrod Bank's assets consist of $5600 in reserves and $14800 in bonds. In terms of liabilities, they have $8400 in checkable deposits with their customers. This gives them a net worth of $12000, which is the value of assets ($5600+ $14800) minus liabilities ($8400). The Federal Reserve conducts Open Market Operations by buying $3000 worth of bonds from Goldenrod Bank. By how much do Goldenrod Bank's reserves increase in order to conduct this policy? $ Calculate the change in Goldenrod Bank's net worth: $

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 3SCQ: Calculate the equity each of these people has in his or her home: Fred just bought a house for...

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The table below reports the breakdown of assets and liabilities for all commercial banks for January 2020, two months before the start of the COVID-19 recession, and December 2020. Assets (in billions of dollars) Liabilities (in billions of dollars) Jan-20 Dec-20 Jan-20 Dec-20 Loans $10,041.54 $10,376.47 Deposits $13,293.30 $16,061.82 Reserves $1,768.52 $3,168.94 Borrowings $1,965.90 $1,715.81 Treasury Securities $3,008.19 $3,726.10 Other Liabilities $593.42 $825.74 Other Assets $2,984.52 $3,224.45 Total Assets $17,802.77 $20,495.96 Total Liabilties $17,802.77 $20,495.96 From January to December, the net worth of banks changed by $___ billion (round your answer to two decimal places).
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