Impact on balance sheet of First Bank? (急, 今天內)

Question

Suppose the Fed purchases $1 billion in securities from First Bank. What is the impact on First Bank's balance sheet?

Answer 1

First, Fed is give money yo First bank
therefore, First bank's CASH in increase
CASH is in Current account ( CASH BALANCE will increase $1 billon)(DR)

CR Income statement account ( profit AND LOSS ACCOUNT)
due to purchases in securities
first bank profit increase