The immediate effect of a bank's purchase of U.S.government securities from the Fed is a(n)
A) decrease in the bank's liabilities
B) increase in the bank's liabilities
C) increase in the bank's required reserves
D) increase in the bank's actual reserves
E) decrease in the bank's actual reserves
Correct Answer:
Verified
Q95: The extent of money expansion will be:
A)greater
Q97: When the Fed sells U.S.government securities to
Q166: Under which of the following circumstances will
Q167: The Fed can reduce the money supply
Q168: An increase in banks' desire for liquidity
Q169: Suppose the banking system has no excess
Q170: If the Fed increases the required reserve
Q173: If banks allow some of their excess
Q175: Suppose the reserve requirement ratio is 20
Q176: The actual money multiplier is smaller than
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