Domestic assets by writing a check on itself

Assignment Help Business Economics
Reference no: EM132285741

A balance sheet for the central bank of an economy is shown below:

Central Bank Balance Sheet

Assets                                           Liabilities

Foreign assets   $1,000                Deposits held by private banks $500

Domestic assets $1,500                Currency in circulation         $2,000

Please write the new balance sheet if the bank makes a sterilized transaction by selling $100 of foreign assets for domestic currency and then purchasing $100 of domestic assets by writing a check on itself.

Reference no: EM132285741

Questions Cloud

Achieve my goals and dreams : What does that person do that could help me achieve my goals and dreams?
Explain which state constitution you believe is fairer : Compare and contrast the 2 state constitutions by explaining at least 5 similarities and 5 differences between the constitutions.
Random questioners for employees in chemical engineer : Random Questioners for 20 employees in chemical engineer Make analysis for the information which they collected Use ALOHA soft wear and make example
Screenshot of the location you chose to zoom : Include a screenshot of the location you chose to zoom in on.
Domestic assets by writing a check on itself : if the bank makes a sterilized transaction by selling $100 of foreign assets for domestic currency and then purchasing $100 of domestic assets by writing
Relative motion between these two plates : Based on the relative motion between these two plates, is the distance between San Francisco and Los Angeles becoming greater or shorter over time?
Types of unemployment undesirable : Discuss different types ( frictional, structural and cyclical) of unemployment and the impact of each type of unemployment on business.
Undermine regional or global stability : Do you think regional trading blocs promote or undermine regional or global stability? Explain.
?control over price and an oligopoly leveraging : ?Control over price and an oligopoly leveraging it can be a problem, just look at what happened to the price for insulin.

Reviews

Write a Review

Business Economics Questions & Answers

  Assets liabilities cash

Assets Liabilities Cash $200,000 DD $2,000,000 RR = $250,000 Dep at Fed $100,000 19. This bank can safely expand its loan portfolio by A. $150,000 B. $200,000 C. $50,000 D. $0 E. Impossible to determine based on the info provided

  Why should we take selection

Why should we take selection and participation bias into account when analyzing data

  How much of this payment goes to principal

You just received a car loan for $20,000. The terms of the loan are for 5 years at 6% annual interest, compounded monthly. What is your monthly payment? For the first month, how much of this payment goes to principal? For the first month, how much of..

  What is the irr for this investment

Each year, the company pays dividends of $.75. After holding the stock for 3 years, the investor sells it for $30. What is the IRR for this investment?

  Pay matrix and the nash equilibrium

Assume that this is a pass/fail assignment, where the passing grade is low enough that one person can produce a passing paper.

  Concerned about growing inequality of incomes

Suppose a country's government is concerned about growing inequality of incomes and wants to undertake a program that will increase the total earnings of the unskilled. Extending employer payroll taxes to all earnings over $117,000 per year and incre..

  Types of networks are multiplexing technologies

Question A: What types of networks are multiplexing technologies most commonly used and what capabilities does it provide to users and providers?

  Real interest rate and the quantity of investment

What effect will this have on supply and demand of loanable funds? How will this affect the real interest rate and the quantity of investment?

  What is present value today of 4 years of university cost

If your discount rate is 5?% compounded? annually, what is the present value today of 4 years of university costs starting 18 years from? today?

  What is asymmetric information

What is asymmetric information? Explain adverse selection and moral hazard problems arising because of asymmetric information

  Why is senior care day center considered monopolistic

Why is Senior Care Day Center considered monopolistic? Please give a paragraph answer. Customer analytics can be used for improving retention rates. How? Discuss THREE factors needed for economic growth. if all other things are expected to be held co..

  International tax competition involves efforts

International tax competition involves efforts by national governments:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd