$\text { TBK Bank Balance Sheet A ssets }\quad\quad\quad\quad\quad \text { Liabilities }$

question 436

Multiple Choice

$\text { TBK Bank Balance Sheet A ssets }\quad\quad\quad\quad\quad \text { Liabilities }$
$\begin{array}{|lc|lc|}\hline \text { Reserves } &&\text { Deposits }&\$2,000,000\\\text { Required }& \$ 120 \\\text { Total reserves }&\$200,000\\\text { Loans } & 1,800,000 &\\\text { Total assets } \quad\quad\quad\quad\quad\quad\quad& 2,000,000&\text { Total assets }&2,000,000 \\\hline\end{array}$
-Using the data in the above table, an open market operation in which the Fed purchased $100,000 of government securities from a bank would

• A) increase the banking system?s reserves by $100,000.
• B) create a reserve deficiency for the banking system.
• C) lead to a rise in the federal funds rate.
• D) cause demand deposits to fall by $100,000.

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Definitions:

HS

This term was already defined as not real.

Inference Forms

Patterns of reasoning or argument structure that are recognized as valid or invalid.

Inference Forms

Inference forms refer to the logical structures that showcase how conclusions are derived from premises.

MP

Abbreviation for Modus Ponens, a form of argument where if 'P implies Q' and 'P' is asserted to be true, then 'Q' must be true.