When the U.S. Treasury purchases gold from a member of the non-bank public, the immediate effect is that __________ and __________.
A) reserves increase; currency in circulation decreases
B) reserves decrease; currency in circulation increases
C) reserves increase; Treasury deposits decrease
D) reserves decrease; Treasury deposits increase
Correct Answer:
Verified
Q24: When currency outstanding decreases,
A) gold certificates rise.
B)
Q25: A sound monetary policy response to a
Q26: Bank reserves will decrease if
A) Fed liabilities
Q27: When currency outstanding increases,
A) gold certificates rise.
B)
Q28: When the U.S. Treasury sells gold, the
Q30: Federal Reserve credit is equal to bank
Q31: An increase in shipments of currency from
Q32: The Federal Reserve float is
A) items in
Q33: Suppose that the Treasury decides to spend
Q34: Factors supplying and absorbing bank reserves constitute
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