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When a Bank Joins the Federal Reserve System

Question 67

Multiple Choice

When a bank joins the Federal Reserve System,


A) the Fed's capital account and the bank's deposits with the Fed increase, but the monetary base falls.
B) the Fed's capital account increases, but the bank's deposits with the Fed and the monetary base fall.
C) the Fed's capital account, the bank's deposits with the Fed, and the monetary base all fall.
D) the Fed's capital account, the bank's deposits with the Fed, and the monetary base all increase.

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