Consolidated Balance Sheets

15-2 Problems

15-2

Consolidated Balance Sheet: All Commercial Banks

Assets:

Initial Data

Lower Discount Rate = 1 Bill new Borrowing

Fed sells $3B securities to public who pay w/ check

Fed buys $2 billion of sec from commercial banks.

Reserves 33 33+1=34 33-3=30 33+2=35

Securities 60 60 60 60-2=58

Loans 60 60 60 60

Liabilities & Net W:

Checkable Dep.

150 150 150-3=147 150

Loans from Fed Reserve Banks

3 3+1=4 3 3

Consolidated Balance Sheet: FEDERAL RESERVE BANKS

Assets:

Initial Data

Lower Discount Rate = 1 Bill new Borrowing

Fed sells $3B securities to public who pay w/ check

Fed buys $2 billion of sec from commercial banks.

Securities 60 60 60-3=57 60+2=62

Loans to Commercial Banks

3 3+1=4 3 3

Liabilities & Net W:

Res of Comm Bk.

33 33+1=34 33-3=30 33+2=35

Treasury Dep.

3 3 3 3

Federal Reserve Notes

27 27 27 27