Cashflows in and out

You withdraw $1,000 from reserve and change nothing else. What happens to the beta sleeve's weight?

• It stays the same, because no beta was traded
• It rises, because the same beta dollars are now divided by a smaller total
• It falls, because the book is smaller

Under this course's default rule, the book is exactly on target when a deposit arrives. How is it split?

• All of it to reserve
• Equally across the sleeves
• Pro rata to the target weights