When the Fed sells U.S. government securities to a member bank, the immediate effect on that bank's balance sheet is a(n):
a. decrease in assets and an increase in liabilities
b. increase in assets and a decrease in liabilities.
c. increase in both assets and liabilities.
d. decrease in both assets and liabilities.
e. change in the type of assets the bank is holding, but no change in liabilities.
e
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The purchase of the assets of one steelmaker by another steelmaker might be a violation of the
a. Clayton Act b. Federal Trade Commission Act c. Wheeler-Lea Act d. Celler-Kefauver Anti-Merger Act e. Robinson-Patman Act
Domestic currency appreciation? will:
A) help domestic firms that export and hurt domestic firms that import.
B) hurt domestic firms that import.
C) hurt domestic firms that export and help domestic firms that import.
D) help domestic firms that export.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
One way for a bank to deal with credit risk is to:
A. increase the number of loans made in any year. B. add a mark-up for a specific borrower based on the borrower's credit history to the cost of funds. C. charge all borrowers from the same industry an average rate for that industry. D. avoid making loans to borrowers from a broad spectrum and to specialize geographically and in specific industries.