Which of the following statements is NOT true?
A) The supply of money decreases when the Federal Reserve Banks buy government securities from households or businesses.
B) Excess reserves are the amount by which actual reserves exceed required reserves.
C) Commercial banks increase the supply of money when they purchase government bonds from households or businesses.
D) Commercial bank reserves are an asset to commercial banks but a liability to the Federal Reserve Banks.
Correct Answer:
Verified
Q226: When bond prices go up,interest rates
A)go up.
B)stay
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Q229: The purpose of a tight money policy
Q230: Statement I: The reserve requirement for demand
Q232: An increase in the money supply will
Q233: If the Fed buys government bonds on
Q234: Which of the following will NOT happen
Q235: When the Fed engages in a tight
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