An open market purchase occurs when the Fed
A. Sells bonds to the public, increasing bank reserves.
B. Sells bonds to the public, decreasing bank reserves.
C. Buys bonds from the public, increasing bank reserves.
D. Buys bonds from the public, decreasing bank reserves.
Answer: C
You might also like to view...
In the 1973 movie Save the Tiger, Jack Lemmon plays Harry Stoner, the CEO of a clothing manufacturer whose business has fallen on hard times
In one of the key scenes of the movie, Stoner tries to convince his partner that they should hire someone to burn one of their buildings in order to collect on their insurance policy. Harry Stoner's actions are an example of A) asymmetric information. B) adverse selection. C) moral hazard. D) self-interest.
The U.S. balance of trade has been in a large surplus since 2001
a. True b. False Indicate whether the statement is true or false
According to the graph shown, at point C the firm is earning:
A. fewer profits than at point B, and they should produce less. B. higher profits than at point B, and they should produce more. C. fewer profits than at point B, and they should produce more. D. higher profits than at point B, and they should produce less.
The difference between accounting profit and economic profit relates to
a. the manner in which revenues are defined. b. how marginal revenue is calculated. c. the manner in which costs are defined. d. the price of the good in the market.