If the Fed Buys U.S.Treasury Securities,then This

question 253

Multiple Choice

If the Fed buys U.S.Treasury securities,then this

• A)increases reserves,encourages banks to make more loans,and increases the money supply.
• B)decreases reserves,causes banks to reduce their loans,and decreases the money supply.
• C)decreases reserves,causes banks to reduce their loans,and increases the money supply.
• D)increases reserves,causes banks to reduce their loans,and increases the money supply.