How Are the Assets and Liabilities Changed for a Bond

question 458

Essay

How are the assets and liabilities changed for a bond dealer, the bond dealer's bank, and the Fed when the Fed buys $100,000 in bonds?

---

Definitions:

Senior Moment

A colloquial term for a temporary lapse in memory or confusion that is often humorously attributed to aging.

Erikson

A psychologist known for his theory on the psychological development of human beings, which consists of eight stages from infancy to adulthood.

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.

Generativity

A stage of adult development involving concern for establishing and guiding the next generation.