Suppose that the Federal Reserve decides to decrease the money supply with a $300 purchases of Treasury bills. Complete the tables that represent the financial position of the Federal Reserve and commercial banks after this open-market operation. Be sure to use a negative sign for reduced values. Federal Reserves Assest Liabilities

Commercial Reserves Assets Liabilities

For the Federal Reserve, what are assets? What are liabilities?

a. Monetary base; Reserves
b. Monetary base; Treasury bills
c. Treasury bills; Reserves
d. Reserves; Treasury bill
e. Treasury bills; Monetary base

1. Federal Reserves:

Assets : $300

The Fed purchased these T-bills so they will form part of the Fed's assets as they are now owned by the Fed.

Liabilities: $300

Liabilities of the Fed will increase by $300 because the banks will deposit the money they got from the purchase in the Fed.

Commercial Banks:

Treasury Bills: -$300

The Treasury bills will reduce by $300 to reflect that the Fed purchased $300 worth of T-bills from the banks.

Reserves: $300

Reserves will increase because the banks would have made money from selling the T-bills to the Fed.

2. e. Treasury bills; Monetary base

Treasury bills are assets to the Fed in this case because as explained, they own these T-bills now after purchasing them.

The monetary base however, is a liability because it represents commercial bank reserves held in the Fed. They owe the banks this money thereby making it a liability.

start by isolating the variable on one side by adding 43w^2 to both sides.   the equation will read:

25w^2+5=0

*subtract 5 from both sides*

25w^2=-5

*divide both sides by 25*

w^2=-1/5

*take the square root of both sides*

w=√(-1/5)

the square root of -1 is i.   the square root of 5 remains √5

the answer is i/√5.

hope this

answer; i believe the answer is 40,600,000;