When the Fed sells bonds, bank reserves increase.
a. true
b. false
b. false
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One of the benefits of money as a medium of exchange is that
A) it allows individuals to compare the relative value of goods. B) it allows for specialization that leads to economic efficiencies. C) over time it will become more valuable so that individuals can purchase more goods and services. D) it allows for private transactions such as trading vegetables for medical services.
A bank's excess reserves are the fraction of a bank's deposits held at the Federal Reserve
Indicate whether the statement is true or false
When individuals increase their personal wealth through production and exchange, they
What will be an ideal response?
Which of the following is not an obstacle to development?
A. Overpopulation B. Excessive investment C. Political instability D. Corruption