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Exhibit 19-4  Balance Sheet of Tucker National Bank Assume All

Question 211

Multiple Choice

Exhibit 19-4  Balance sheet of Tucker National Bank Exhibit 19-4  Balance sheet of Tucker National Bank   Assume all banks in the system started with the balance sheet shown in Exhibit 19-4 and the Fed makes a $1,000 open market purchase. The result would be a(n) : A)  infinite contraction of the money supply. B)  infinite expansion of the money supply. C)  $1,000 expansion of the money supply. D)  $5,000 expansion of the money supply. Assume all banks in the system started with the balance sheet shown in Exhibit 19-4 and the Fed makes a $1,000 open market purchase. The result would be a(n) :


A) infinite contraction of the money supply.
B) infinite expansion of the money supply.
C) $1,000 expansion of the money supply.
D) $5,000 expansion of the money supply.

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