When the Reserve Bank conducts an open market operation by purchasing securities from a bank,
.
A) the bank's reserves increase
B) the bank's deposits increase but its reserves decrease
C) public holdings of securities increase
D) the bank's deposits increase but its reserves do not change
Correct Answer:
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Q111: real GDP increases the demand for money
Q112: According to the quantity theory of money,
A)V
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Q114: An increase in the nominal interest rate
A)leads
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Q117: The monetary base is the sum of
A)M1
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