The Immediate Effect of a Bank's Purchase of U

question 60

Multiple Choice

The immediate effect of a bank's purchase of U.S.government securities from the Fed is a(n) :

• A)decrease in the bank's assets.
• B)increase in the bank's assets.
• C)decrease in the Fed's assets.
• D)increase in the Fed's assets.
• E)decrease in both the bank's and the Fed's assets.

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Definitions:

Journal Page Number

The specific page number in a journal where transactions are recorded, aiding in tracking and referencing financial activities.

Account Number

A unique sequence of numbers assigned to a customer's account in the books of a financial institution.

Prepaid Insurance

Definition: An asset account that represents insurance payments made in advance for coverage extending beyond the current financial reporting period.

Accounts Payable

The amount of money owed by a company to its creditors for goods and services purchased on credit.