Which Among the Following Will Happen If the Fed Buys

question 2

Multiple Choice

Which among the following will happen if the Fed buys bonds from a private bank?

• A) The Fed's total liabilities will increase.
• B) The Fed's total assets will decrease.
• C) The private bank's total assets will increase.
• D) The private bank's total assets will decrease.

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Raw Materials

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A global situation where the demand for various goods or services exceeds the available supply, leading to scarcity.