When the Fed Sells Government Securities to a Bank, How

question 104

Multiple Choice

When the Fed sells government securities to a bank, how are the Fedʹs assets affected?

• A) The amount of the Fedʹs government securities decreases.
• B) The amount of reserves held at the Fed increases.
• C) The amount of the Fedʹs government securities increases.
• D) The amount of reserves held at the Fed decreases.

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