When the Fed Sells U

question 109

Multiple Choice

When the Fed sells U.S.government securities to a member bank,the immediate effect on that bank's balance sheet is a(n) :

• A)decrease in assets and an increase in liabilities.
• B)increase in assets and a decrease in liabilities.
• C)increase in both assets and liabilities.
• D)decrease in both assets and liabilities.
• E)change in the type of assets the bank is holding,but no change in liabilities.

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Definitions:

Looking Backward

A utopian science fiction novel by Edward Bellamy, published in 1888, depicting a future society in the year 2000 characterized by equality and cooperation.

Edward Bellamy

An American author and socialist, most famous for his utopian novel "Looking Backward" (1888), which imagined a future society based on cooperative ownership and the absence of poverty.

Looking Backward

A utopian novel published in 1888 by Edward Bellamy, depicting the year 2000 and the transformative impact of a socialist society on the United States.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, leading to technological innovation and urbanization.