If a bank's deposits at the Fed increase by $10 million, then
A. both the bank's liabilities and the Fed's liabilities increase by $10 million.
B. both the bank's assets and the Fed's assets increase by $10 million.
C. the bank's assets increase by $10 million and the Fed's liabilities increase by $10 million.
D. the bank's assets increase by $10 million, but there is no change at the Fed since it does not really have assets or liabilities.
Answer: C
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a. true b. false
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