Refer to the balance sheet below for the Bank of Pecunia. Assets Foreign assets Domestic assets...

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Refer to the balance sheet below for the Bank of Pecunia. Assets Foreign assets Domestic assets Liabilities $1,200 Deposits held by private banks $510 $1,640 Currency in circulation $2,330 Suppose that the Bank of Pecunia undertakes the following two transactions: Transaction 1: Sells $250 of its foreign assets and receives as payment $250 in domestic currency. Transaction 2: Buys $250 worth of domestic government bonds with domestic currency. Illustrate the combined effects of these two transactions by filling in the new balance sheet for the Bank of Pecunia below. 69 Assets Foreign assets Domestic assets 69 EA Liabilities Deposits held by private banks Currency in circulation The combined effect of Transactions 1 and 2 is in the domestic money supply. Refer to the balance sheet below for the Bank of Pecunia. Assets Foreign assets Domestic assets Liabilities $1,200 Deposits held by private banks $510 $1,640 Currency in circulation $2,330 Suppose that the Bank of Pecunia undertakes the following two transactions: Transaction 1: Sells $250 of its foreign assets and receives as payment $250 in domestic currency. Transaction 2: Buys $250 worth of domestic government bonds with domestic currency. Illustrate the combined effects of these two transactions by filling in the new balance sheet for the Bank of Pecunia below. 69 Assets Foreign assets Domestic assets 69 EA Liabilities Deposits held by private banks Currency in circulation The combined effect of Transactions 1 and 2 is in the domestic money supply.