1. Consolidated Balance Sheets 15-2 Problems

2. 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 commercia l banks. Reserves3333+1=3433-3=3033+2=35 Securities60 60-2=58 Loans60 Liabilities & Net W: Checkable Dep. 150 150-3=147150 Loans from Fed Reserve Banks 33+1=433

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 commercia l banks. Securities60 60-3=5760+2=62 Loans to Commercial Banks 33+1=433 Liabilities & Net W: Res of Comm Bk. 3333+1=3433-3=3033+2=35 Treasury Dep. 3333 Federal Reserve Notes 27