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Here Is How an Open Market Sale Works: a Commercial

Question 117

Multiple Choice

Here is how an open market sale works: A commercial bank __________ government securities to (from) the Fed,which lowers the bank's deposits at the __________ and __________ the bank's __________.


A) buys; Fed; lowers; reserves
B) sells; Treasury; raises; reserves
C) sells; Fed; raises; reserves
D) buys; Treasury; lowers; liabilities
E) none of the above

Correct Answer:

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