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After the Fed Makes an Open Market Purchase of Bonds,the

Question 133

Multiple Choice

After the Fed makes an open market purchase of bonds,the deposit-creation process may continue only to the point where


A) the Fed reverses course and sells bonds
B) the Fed changes the required reserve ratio
C) all excess reserves have been converted into required reserves
D) all required reserves have been converted into excess reserves
E) the Fed raises interest rates

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