The sale of $1 billion of securities to a bank or some other business by the Fed is an example of
A) a multiple contraction of the quantity of money.
B) a last resort loan.
C) a change in the required reserve ratio.
D) an open market operation.
Correct Answer:
Verified
Q252: A decrease in the quantity of reserves
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Q254: A bank creates money by
A) lending its
Q255: The Fedʹs purchase of government securities will
A)
Q256: The majority of money is created when
A)
Q258: The Fed buys $100 million of government
Q259: When the Fed sells one million dollars
Q260: The initial impact of the Fedʹs open
Q261: A bankʹs required reserves are calculated by
Q262: A small commercial bank has $10,000 in
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