If the central bank sells euro1 million of bonds and banks reduce their borrowings from the central bank by euro1 million, predict what will happen to the money supply. a. the monetary base would fall by euro2 million, leading to a decline in the money supply b. the monetary base would rise by euro2 million, leading to an increase in the money supply c. the sale of bonds would offset the reduction in borrowings so there would be no change in the monetary base and money supply d. the effect on the money supply is ambiguous

Suppose the following items were taken from the 2017 financial statements of whispering winds corp.. (all dollars are in millions.) common stock $3,230 accumulated depreciation—equipment $3,940 prepaid rent 175 accounts payable 1,560 equipment 6,940 patents 2,270 stock investments (long-term) 670 notes payable (long-term) 780 debt investments (short-term) 1,740 retained earnings 6,175 income taxes payable 150 accounts receivable 1,740 cash 1,290 inventory 1,010 prepare a classified balance sheet in good form as of december 31, 2017. (list current assets in order of liquidity.)