T-accounts

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Use T-accounts to show the effect on the Fed’s balance sheet of the Fed selling $5 billion in Japanese government bonds, denominated in yen. What happens to the Fed’s international reserves and the monetary base? Is this a sterilized or an unsterilized foreign exchange intervention?

READ ALSO :   For small samples we have to use the t-distribution instead of the Normal distribution. How would you describe – and measure – the differences between these two distributions?