If the Fed Purchases $100,000 in Government Bonds from a Bank

question 1

Multiple Choice

If the Fed purchases $100,000 in government bonds from a bank, then the

• A)liabilities of the bank rise by $100,000.
• B)reserves of the bank fall by $100,000.
• C)assets of the bank rise by $100,000.
• D)reserves of the bank rise by $100,000.