When the Fed buys U.S. government securities from a bank, the Fed
A) loans the money needed to buy the securities to the bank.
B) increases the bank's reserves at the Fed.
C) obtains the money for the purchase from the U.S. Treasury.
D) decreases the monetary base and raises the federal funds rate.
B
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Changes in the rental price of land is largely determined by: a. changes in the supply of land
b. changes in the demand for land. c. changes in the elasticity of supply of land. d. the creation of new landfills.
M1 and M2 are
a. usually equal b. aggregates that, when added together, encompass all methods of payment c. nonofficial measures of the U.S. money supply d. both measures of the U.S. money supply e. the best way to measure the U.S. money supply
Refer to the graph below with three demand curves. A "decrease in demand" would be illustrated as a change from:
A. Point 1 to point 4
B. Point 1 to point 3
C. Line C to B
D. Line A to C
When you purchase a new pair of jeans you do so in the
A) factor market. B) resource market. C) input market. D) product market.