An Open Market Purchase of Securities by the Reserve Bank

question 64

Multiple Choice

An open market purchase of securities by the Reserve Bank

• A)decreases banks' total assets.
• B)increases banks' reserves and decreases banks' securities.
• C)decreases banks' reserves and increases banks' securities.
• D)involves a bank purchasing government securities from the Reserve Bank .

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Definitions:

Respectfully

Describes an approach or manner that shows esteem or deference towards others.

Budgets

Financial plans that estimate revenue and expenses over a specified future period, used by organizations, governments, and individuals to manage money.

Points Of Control

Strategic locations within a system or process where changes can be applied to influence outcomes or manage flow.

Estimates

are approximations or educated guesses regarding a particular quantity, cost, or measurement, often used in planning and forecasting.