Chapter 11The Central BankBalance Sheetand the MoneySupplyProcessMcGraw-HilyrwinCopyright 2006byTheMcGraw-Hill Companies,Inc.All rights reserved
McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 11 The Central Bank Balance Sheet and the Money Supply Process
CONTENSO11.1TheCentralBank'sBalanceSheet11.2ChangingCentral BankBalanceSheet11.3TheDepositExpansionMultiplier11.4MonetaryBaseandtheMoneySupply11.5Arithmeticof MoneyMultiplier11.6LimitsonCentralBank'sControlofMoneySupply7-2
17-2 CONTENS 11.1 The Central Bank’s Balance Sheet 11.2 Changing Central Bank Balance Sheet 11.3 The Deposit Expansion Multiplier 11.4 Monetary Base and the Money Supply 11.5 Arithmetic of Money Multiplier 11.6 Limits on Central Bank’s Control of Money Supply
10.1TheCentralBank'sBalancedSheetFigure 17.1 The Central Bank's Balance SheetAssetsLiabilitiesGovernment'sSecuritiesCurrencyBankForeignexchangereservesGovernment'saccountBankersLoansAccounts ofthecommercialBankbanks (reserves)WebLink17-3
17-3 10.1 The Central Bank’s Balance Sheet Web Link
TheCentralBank's Balance Sheetd1. AssetsSecurities.Fed holds only U.S. Treasury securitiescontrolled throughpurchases and sales knownas"open market operations."ForeignExchangeReservesbonds issuedbyforeign governmentsLoansDiscountLoansFloat17-4
17-4 The Central Bank’s Balance Sheet 1. Assets • Securities • Fed holds only U.S. Treasury securities • controlled through purchases and sales known as “open market operations.” • Foreign Exchange Reserves • bonds issued by foreign governments • Loans • Discount Loans • Float
TheCentralBank'sBalance SheetO2. LiabilitiesCurrencyGovernment AccountsReservesCommercialBank'sCheckingAccounts17-5
17-5 The Central Bank’s Balance Sheet 2. Liabilities • Currency • Government Accounts • Reserves • Commercial Bank’s Checking Accounts