An open market purchase of securities by the Fed
A) increases banks' reserves and decreases banks' securities.
B) decreases banks' reserves and increases banks' securities.
C) decreases banks' total assets.
D) involves a bank purchasing government securities from the Fed.
Ans: A) increases banks' reserves and decreases banks' securities.
You might also like to view...
When the U.S. interest rate differential ________, the demand for dollars ________ and the demand curve for dollars shifts rightward
A) rises; does not change B) rises; decreases C) falls; increases D) rises; increases E) falls; decreases
On any given day we know a salesman can earn $0 with a 30% probability, $100 with a 20% probability or $300 with 40% probability. His expected earnings equal
A) $0. B) $140. C) $300. D) It cannot be determined from the available information.
A cartel's marginal cost curve is the
a. highest of all the individual firms' marginal cost curves b. lowest of all the individual firms' marginal cost curves c. horizontal sum of all the individual firms' marginal cost curves d. average of all the individual firms' marginal cost curves e. product of all the individual firms' marginal cost curves
From the demand side, the equilibrium level of GDP is one at which
a. everyone who wants a job has one and firms are not looking for extra workers. b. the only unemployment is frictional. c. aggregate demand equals production. d. the only unemployment is cyclical.