Harvard ECON 1500 – Suppose the Fed buys $200 million

Harvard ECON 1500 – Suppose the Fed buys $200 million

Subject: Economics    / General Economics   
Question
Suppose the Fed buys $200 million worth of Euros with U.S. currency and, at the same time, sells $200 million of U.S. government securities for U.S. currency in a domestic open market operation. What is the net effect on the monetary base? How has the Fed’s balance sheet been affected? please show your work