If the Fed sells $15 million worth of government bonds to Bank Zip,then initially
A) the amount of deposits held by Bank Zip will increase by $15 million.
B) the amount of reserves held by Bank Zip will decrease by $15 million.
C) the amount of bonds held by Bank Zip will decrease by $15 million.
D) the amount of deposits held by Bank Zip will decrease by $15 million.
E) the amount of reserves held by Bank Zip will increase by $15 million.
Correct Answer:
Verified
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