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Essay

Monetary Policy Impact on Macroeconomic

Essay specific features

 

Issue:

Business

 

Written by:

Lorena L

 

Date added:

June 19, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1428

 

Was viewed:

2978 times

 

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Essay content:

The positive reserves will increase the lending ability of the commercial banks. The commercial bank will have positive reserves in assets and positive checkable deposits in liabilities and net worth, when the Fed buys bonds from the public. Buying bonds from the public is similar to buying bonds from commercial banks...
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They both increase the lending ability of the commercial banks. The opposite will occur when the Fed sells government bonds to commercials banks. The commercial bank will have a positive for securities and a negative for reserves in assets. The negative reserve in assets will decrease the lending ability of the commercial banks...
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