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(Solved): how do I solve this? Wisconsin National Bank's Balance Sheet (millions of dollars) Assets Liabilitie ...



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Wisconsin National Banks Balance Sheet
(millions of dollars)
Assets
Liabilities
Reserves with Fed
$90 Checking deposits $120
Wisconsin National Bank's Balance Sheet (millions of dollars) Assets Liabilities Reserves with Fed $90 Checking deposits $120 Loans 10 Government securities 20 16. Figure 15.6 shows the balance sheet of Wisconsin National Bank. Assume that the Fed has set the required reserve ratio at 10 percent. a. Wisconsin National Bank would have required reserves of and excess reserves of The maximum amount of new money that the bank could create would equal b. Suppose that the Fed sells $10 million in government securities to Wisconsin National Bank. After the sale, the bank would have. of required reserves and of excess reserves. As a result of this transaction, Wisconsin National Bank's ability to create additional money would increase/decrease by_________ c. Instead, suppose that the Fed buys $10 million in government securities from Wisconsin National Bank. As a result of this transaction, Wisconsin National Bank's ability to create additional money would increase/decrease by________ Figure 15.6


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