What are open market operations

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Reference no: EM131303145

1. What are open market operations? What is the effect on the monetary base of an open market purchase?

2. Use a T-account for Bank of America and a T-account for the Fed to show the result of the Fed buying $1 million in Treasury bills from Bank of America.

3. What is the difference between the monetary base and the nonborrowed monetary base?

Reference no: EM131303145

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