If a bank sells 100 of assets at the firesale price of 50
If a bank sells $100 of assets at the fire–sale price of $50, the balance sheet effect is to
a reduce reserves by $50.
b reduce net worth by $50.
c reduce reserves by $100.
d reduce net worth by $100.
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if a bank sells 100 of assets at the firendashsale price of 50 the balance sheet effect is toa reduce reserves by 50b
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