The Citizens First Bank sells $100,000 of government securities to the Fed. This sale immediately
A) decreases the bank's checkable deposits.
B) increases the bank's reserves.
C) decreases the quantity of money.
D) decreases the bank's assets.
E) increases the bank's required reserves.
Correct Answer:
Verified
Q56: The-------------------- the desired reserve ratio, the --------------------
Q57: Which of the following best describes a
Q58: Which of the following is money?
A)debit cards
B)checkable
Q59: M1 is composed of
A)currency held by individuals
Q60: The voting members of the Federal Open
Q62: The discount rate is
A)equal to the nominal
Q63: Banks can make loans as long as
Q64: The process of money creation by the
Q65: --------------------by the Fed means that the Fed--------------------
A)Credit
Q66: A commercial bank is defined as
A)a firm
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