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When the Fed Sells U

Question 97

Multiple Choice

When the Fed sells U.S.government securities to a member bank,the immediate effect on that bank's balance sheet is a(n) :


A) decrease in assets and an increase in liabilities.
B) increase in assets and a decrease in liabilities.
C) increase in both assets and liabilities.
D) decrease in both assets and liabilities.
E) change in the type of assets the bank is holding,but no change in liabilities.

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