Question: the following graph depicts us central banks total assets and...
The following graph depicts US central bank’s total assets and excess reserves of banks. a) Use the above graph to determine what kind of interventions the central bank undertook. (Hint: Depict the change in a central bank’s balance sheet.)
b) Depict this intervention in the supply and demand diagram for Reserves (US equivalent of ESF) to determine the impact on the federal funds rate (US equivalent of the cash rate).