Copperton Bank's assets consist of $6800 in reserves and $16000 in bonds. In terms of liabilities, they have $4100 in checkable deposits with their customers. This gives them a net worth of $18700. The Federal Reserve conducts Open Market Operations by selling $3000 worth of bonds to Copperton Bank. Do Copperton Bank's reserves increase or decrease? OIncrease ODecrease ONo change Calculate the change in Copperton Bank's net worth as a result of this policy:

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Monetary System
Section: Chapter Questions
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Copperton Bank's assets consist of $6800 in reserves and $16000 in bonds. In terms of liabilities, they have $4100 in checkable deposits with their customers. This gives them
a net worth of $18700.
The Federal Reserve conducts Open Market Operations by selling $3000 worth of bonds to Copperton Bank.
Do Copperton Bank's reserves increase or decrease?
OIncrease
ODecrease
ONo change
Calculate the change in Copperton Bank's net worth as a result of this policy:
Transcribed Image Text:Copperton Bank's assets consist of $6800 in reserves and $16000 in bonds. In terms of liabilities, they have $4100 in checkable deposits with their customers. This gives them a net worth of $18700. The Federal Reserve conducts Open Market Operations by selling $3000 worth of bonds to Copperton Bank. Do Copperton Bank's reserves increase or decrease? OIncrease ODecrease ONo change Calculate the change in Copperton Bank's net worth as a result of this policy:
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