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The Reserve Bank Buys $100 Million of Government Securities from Bank

Question 115

Multiple Choice

The Reserve Bank buys $100 million of government securities from Bank One.Bank One's balance sheet shows this transaction as ________ in total assets and ________ in reserves.


A) a $100 million increase;a $100 million increase
B) a $100 million decrease;a $100 million decrease
C) a $100 million increase;no change
D) no change;a $100 million decrease
E) no change;a $100 million increase

Correct Answer:

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