Which of the following will occur if the Fed buys $10 million of securities from the University National Bank?
A) The Fed will pay by increasing the University National Bank's deposit account with the Fed by $10 million.
B) The University National Bank has $10 million more in securities.
C) The Fed will pay by decreasing the University National Bank's deposit account with the Fed by $10 million.
D) The University National Bank has $10 million less in excess reserves.
A
You might also like to view...
Briefly evaluate the advantages and disadvantages of a lump-sum tax
Why do barriers to entry create market power?
What will be an ideal response?
In a recession, needs-tested spending ________ and induced taxes ________
A) increases; increase B) increases; decrease C) decreases; increase D) decreases; decrease E) increase; do not change
Refer to Figure 3-4. At a price of $25, how many units will be sold?
A) 400 B) 500 C) 600 D) 800