When the Federal Reserve sells a government security to a commercial bank
A) the cash reserves of the commercial bank decrease.
B) the net worth of the commercial bank increases.
C) the loans of the commercial bank will increase.
D) the balance sheet of the commercial bank is thrown off balance.
Ans: A) the cash reserves of the commercial bank decrease.
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If the supply curve decreases while the demand curve remains unchanged, the equilibrium price would increase
a. True b. False Indicate whether the statement is true or false
Too few resources are devoted to the creation of knowledge because profit-seeking firms
a. undervalue knowledge in their pursuit of revenues. b. overuse their patents. c. tend to free-ride on the knowledge that others have developed. d. tend to rely on existing employee knowledge.
Keynes argued thatI.Capitalism did not always lead to full employment.II.Nominal prices were more important than relative prices.
A. I only B. II only C. Both I and II D. Neither I nor II
Refer to the above table. The current account balance is
A. $170. B. -$45. C. $140. D. $155.