If the Fed sells euros valued at $100 million to commercial banks, will this change the size of the Fed's liabilities and assets? Explain.
What will be an ideal response?
The liabilities of the Fed will decrease by $100 million. The sale of euros to commercial banks will deplete the reserves of commercial banks as the Fed debits these reserve accounts. On the asset side, the Fed's assets are also decreased by $100 million as the asset category of foreign exchange reserves is now $100 million smaller.
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Resources that are privately owned are less likely to be depleted than resources that are not privately owned
Indicate whether the statement is true or false
Whenever the supply of a product decreases and the demand for the product increases,
a. the quantity exchanged in the market will increase. b. equilibrium price will rise. c. the quantity exchanged in the market will decrease. d. equilibrium price will fall.
In which regions do recessions, or economic downturns, hit the hardest?
a. Regions that produce more consumer goods. b. Regions that produce more nondurable goods. c. Regions that provide more financial services. d. Regions that produce more capital goods and rely on more housing construction.
Which statement is true?
A. The Federal Trade Commission Act is the most important antitrust law on the books. B. The most important antitrust legislation was passed in the last three decades. C. The Clayton Act outlawed interlocking directorates. D. None of these statements are true.