When the Fed buys government securities, the immediate effect of the purchase is that banks'
A) reserves decrease.
B) loans decrease.
C) reserves increase.
D) assets increase.
E) deposits increase.
C
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Economic theory and experience since 1973 indicate that, under floating exchange rates, a country's fiscal and monetary policies in the short-run and the long-run can
A) have both domestic and foreign economic impact. B) have domestic or foreign economic impact, but not both. C) have domestic but not foreign economic impact. D) have foreign but not domestic economic impact. E) have neither domestic nor foreign economic impact.
Name four of the six primary functions of the central bank
If $1 is worth .8 Canadian dollars, then 1 Canadian dollar is worth:
A. $1.80. B. $1.25. C. $0.20. D. $0.80.
Refer to Figure 7-12 An increase in price from $30 to $35 would
a. increase total revenue by $250
b. decrease total revenue by $250.
c. increase total revenue by $500.
d. decrease total revenue by $500.