In which of the following cases will the size of the central banks balance sheet change? a.

Question:

In which of the following cases will the size of the central bank’s change?
a. The Federal Reserve conducts an open market purchase of $100 million U.S. Treasury securities.
b. A commercial bank borrows $100 million from the Federal Reserve.
c. The amount of cash in the vaults of commercial banks falls by $100 million due to withdrawals by the public.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...