The bank ships excess vault cash to the federal reserve

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Explain how each of the following will affect a bank's deposit balances at the Federal Reserve:

a. The bank ships excess vault cash to the Federal Reserve.

b. The bank buys U. S. government securities in the open market.

c. The bank realizes a surplus in its local clearinghouse processing.

d. The bank sells federal funds.

e. A $ 100,000 certificate of deposit at the bank matures and is not rolled over.

f. Local businesses deposit tax payments in the Treasury's account at the local bank.

Reference no: EM13883127

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