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Explain the impact of each of the following upon commercial bank reserves: (a)the Federal Reserve sells government bonds in the open market to private buyers; (b) the commercial banks reduce their indebtedness to the Federal Reserve Banks;

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Moza Omar Posted

Explain the impact of each of the following upon commercial bank reserves: (a)the Federal Reserve sells government bonds in the open market to private buyers; (b) the commercial banks reduce their indebtedness to the Federal Reserve Banks;

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