When the Fed buys one million dollars in government securities from a commercial bank,
A) the commercial bankʹs total assets increase by one million dollars.
B) there is a change in the composition of the commercial bankʹs assets: reserves increase and government securities decrease.
C) the Fedʹs total assets decrease by one million dollars.
D) All of the above answers are correct.
Correct Answer:
Verified
Q241: When the Fed buys U.S. government securities
Q242: Banks create money whenever they
A) receive monthly
Q243: When the Fed lowers the federal funds
Q244: Money is created by
A) banks taking in
Q245: If the Fed buys $100,000 in U.S.
Q247: The sale of government securities by the
Q248: Which of the following will occur if
Q249: If the Fed buys $100 in securities
Q250: If the Fed sells government securities,
A) commercial
Q251:
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