The Federal Reserve Banks sell government securities to the public. As a result, the checkable deposits ________.

A. of commercial banks are unchanged, but their reserves decrease
B. and reserves of commercial banks both decrease
C. of commercial banks are unchanged, but their reserves increase
D. and reserves of commercial banks are both unchanged


Answer: B

Economics

You might also like to view...

Game theory assumes that players in the game act

a. Rationally b. Optimally c. In their own self-interest d. All the above

Economics

Countries that are unable to produce goods as efficiently as other countries will never be able to trade

a. True b. False Indicate whether the statement is true or false

Economics

Exhibit 1A-1 Straight line In Exhibit 1A-1, as X increases along the horizontal axis, from point A to point B on the line, the Y values 

A. increase so the relationship between X and Y is direct. B. decrease so the relationship between X and Y is inverse. C. remain unchanged so the relationship between X and Y is independent. D. change so the relationship between X and Y is variable.

Economics

Americans generally spend more than _____ of their incomes on services.

A. one-third B. one-half C. two-thirds D. three-quarters

Economics