The Fed buys $100 million U.S. government securities from Bank of America. Bank of America's balance sheet shows this transaction as --------------------in total assets and --------------------in reserves.
A) a $100 million increase; no change
B) no change; a $100 million decrease
C) a $100 million increase; a $100 million increase
D) a $100 million decrease; a $100 million decrease
E) no change; a $100 million increase
Correct Answer:
Verified
Q27: A commercial bank's reserves are equal to
Q28: A commercial bank's main goal is to
A)open
Q29: If the Fed sells government securities to
Q30: During the 2008 financial crisis, banks restricted--------------------and
Q31: The desired reserve ratio is 3 percent.
Q33: Checkable deposits are money because
A)only banks and
Q34: Actual reserves are equal to
A)required reserves plus
Q35: Money market mutual funds
A)are included in M1
Q36: --------------------like a check and--------------------considered money.
A)E-checks work;
Q37: Suppose the currency drain ratio is 33.33
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