Borrowings and open market purchases

Reference no: EM1314350

1. Recently, a troubled bank borrowed $800 million from the Federal Reserve. Explain the impact this event had on the monetary base.

2. Following the terrorist attacks in New York and Washington on September 11, 2001 the Federal Reserve immediately engaged in large open market purchases of government securities. What was the Fed seeking to accomplish?

Reference no: EM1314350

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