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An Open Market Sale of U

Question 35

Multiple Choice

An open market sale of U.S. Treasury securities by the Fed will cause the Banking System's balance sheet to show:


A) only an increase in liabilities.
B) only a decrease in assets.
C) no net change in assets or liabilities, only a change in the composition of assets with securities decreasing and reserves increasing.
D) no net change in assets or liabilities, only a change in the composition of assets with securities increasing and reserves decreasing.

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