Fed – PD – HedgeFund -MMF Balance Sheet Approach [Repo / Reverse Repo]

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Fed – PD – HedgeFund -MMF Balance Sheet Approach [Repo / Reverse Repo]:


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Fed makes a repo with Primary Dealer:


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Fed makes a reverse repo with Primary Dealer


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#Initial Balance Sheet

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Primary Dealer borrows the deposits from MMF


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#Initial Balance Sheet


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Primary Dealer lends the deposits to HedgeFund


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Dr. Engin YILMAZ

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