If the Fed purchases $15 million worth of government bonds from Bank Zip,initially
A) the amount of Bank Zip's deposits at the Fed will decrease by $15 million.
B) the amount of Bank Zip's deposits at the Fed will increase by $15 million.
C) nothing will happen to Bank Zip's balance sheet.
D) the amount of funds deposited at Bank Zip will increase by $15 million.
E) the amount of funds deposited at Bank Zip will decrease by $15 million.
Correct Answer:
Verified
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