An Open Market Sale of U

question 32

Multiple Choice

An open market sale of U.S. Treasury securities by the Fed will cause the Banking System's balance sheet to show:

• A) only an increase in liabilities.
• B) only a decrease in assets.
• C) no net change in assets or liabilities, only a change in the composition of assets with securities decreasing and reserves increasing.
• D) no net change in assets or liabilities, only a change in the composition of assets with securities increasing and reserves decreasing.

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