Keeping in mind the basic balance sheet composition of a Central Bank; you are required to consider the following financial activities carried by State Bank of Pakistan (SBP) and show the impact of each activity on assets and liabilities side of SBP. Also state the impact of each activity on the balance sheet size of SBP?

Note: It is compulsory to provide answer in the format of balance sheet

1. SBP purchased Rs. 20 million of treasury bonds from a commercial bank.

2. SBP sold Rs. 10 million of treasury bonds to a commercial bank.

3. SBP extended a loan of Rs.50 million to a commercial bank.

4. General public withdraw cash of Rs. 100 million from their own bank accounts.

5. SBP purchased Rs. 100 million U.S. Government bonds.

Note: It is compulsory to provide answer in the format of balance sheet

 

Answer rating: 100% (QA)

SL DESCRIPTION 12 3 Extended Loan 14 Public withdraws cash 5 Purchased US Govt Bonds SL D... View the full answer