Suppose the bank of Japan buys bond. what will happen to balance sheet Suppose t

Question

Suppose the bank of Japan buys bond.    what will happen to balance sheet
Suppose the citizens pay tax for Japan, what will happen to balance sheet

About the Monetary Financial Payments Bank Policy System Markets |Assets Gold Cash Japanese government securities Commercial paper Corporate bonds Pecuniary trusts (stocks held as trust property Pecuniary trusts (index-linked exchange-traded funds held as trust property) Pecuniary trusts (Japan real estate investment trusts held as trust property Loans (excluding those to the Deposit Insurance Corporation) Foreign currency assets Deposits with agents Oth

Explanation / Answer

1) If the Bank of Japan buys the bonds there will be no effect on Balance sheet, but there will be some changes on the assets side of the balance sheet.

On the assets side there will be an addition of bonds in the current assets with the amount utilised for the purchase of the bonds and the cash and cash equivalents balance should be reduced as the amount utilised for the purchase of Bonds.

2) If the citizens pay Tax for japan there will be no effect on Balance sheet of Bank of Japan.

Note: Answer is based on the information provided to me for carrying on my duty.

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