The Immediate Effect of a Bank's Purchase of U

question 183

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 liabilities
• B)increase in the bank's liabilities
• C)increase in the bank's required reserves
• D)increase in the bank's actual reserves
• E)decrease in the bank's actual reserves

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