1. Balance Sheet Workspace Practice Problems

2. Problem 1 The US Treasury borrows from the nonbank public by selling them US Treasury securities. The nonbank public pays the Treasury with Federal Reserve Notes.

3. Problem 2 The US Treasury borrows from commercial banks by selling them US Treasury securities and the US Treasury keeps the borrowed money in their account at the Federal Reserve.

4. Problem 3 The Federal Reserve buys US Treasuries from the nonbank public and pays using Federal Reserve Notes.

5. Problem 4 The Federal Reserve sells US Treasuries to a commercial bank.

6. Problem 5 A commercial bank makes a loan to the nonbank public.

7. Problem 6 A commercial bank transfers (deposits) excess vault cash to the Federal Reserve.