1. Open market operations as a monetary tool

Suppose that the Federal Reserve sells $6 million worth of government securities to a customer of Silver Bank.

In the following balance sheets, show the effect of this transaction. (Hint: If either assets or liabilities do not exist, please select Not Applicable and NA in the drop-down menus, and type in 0 (zero) in the numeric entry fields.)

Federal Reserves Balance Sheet
Assets	Liabilities
(Millions of Dollars)	(Millions of Dollars)

Silver Bank's Balance Sheet
Assets	Liabilities
(Millions of Dollars)	(Millions of Dollars)

The Customers Balance Sheet
Assets	Liabilities
(Millions of Dollars)	(Millions of Dollars)