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.


A

Economics

You might also like to view...

Higher future living standards require:

A. increased rates of current consumption. B. increased rates of population growth. C. reduced rates of current consumption. D. reduced rates of current investment.

Economics

If Callum is consuming his utility maximizing bundle and the price of one good rises, what happens to the marginal utility per dollar spent on this good (MU/P), and what should Callum do?

A) MU/P has increased and Callum should buy less of this good. B) MU/P has decreased and Callum should buy less of this good. C) MU/P has increased and Callum should buy more of this good. D) MU/P has decreased and Callum should buy more of this good.

Economics

The Medicare tax is applied only to the first $87,000 of income

a. True b. False

Economics

If the price of a cup of Dunkin' Donuts coffee increases while the price of a Starbucks latte is unchanged, we expect the number of lattes purchased at Starbucks to:

A. increase as some people switch from Dunkin' Donuts coffee to Starbucks lattes. B. decrease as some people switch from Dunkin' Donuts coffee to the Starbucks lattes. C. decrease as some people have less money to spend on caffeinated beverages. D. decrease as some people switch from Starbucks lattes to Dunkin' Donuts coffee.

Economics