MGT411 Assignment No 2 Solution-VU-Semester Fall 2021-Money and Banking

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Consider the following transactions and show the impact of each transaction on the assets and liabilities side of the State Bank of Pakistan (SBP). Also, state the impact of each transaction on the size of the balance sheet of SBP?

1. SBP sells Rs. 100 million treasury bonds to a commercial bank.
2. SBP purchases Rs. 10 million of treasury bonds from a commercial bank.
3. A commercial bank borrows Rs.100 million from the SBP.
4. A person withdraws Rs. 10 million cash from his own bank account.