When the Fed Conducts Open-Market Purchases

question 17

Multiple Choice

When the Fed conducts open-market purchases,

• A)it buys Treasury securities,which increases the money supply.
• B)it buys Treasury securities,which decreases the money supply.
• C)it borrows money from member banks,which increases the money supply.
• D)it lends money to member banks,which decreases the money supply.

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