When the Federal Reserve sells a government security to a bond dealer, which transmits payment from a transactions deposit account at a bank
A. the money supply will decrease.
B. the net worth of the commercial bank will decrease.
C. the cash of the Federal Reserve will decrease.
D. the loans of the commercial bank will increase.
Answer: A
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An implicit cost is defined as:
A) the opportunity cost of using a resource that is not explicitly paid out by the firm. B) the difference between an input's explicit cost and its actual cost. C) the amount by which economic profit exceeds accounting profit. D) the amount by which the money spent on an input to production exceeds its opportunity cost.
A country with a high GDP per capita is classified as an industrially advanced country (IAC)
a. True b. False Indicate whether the statement is true or false
If there are significant external benefits associated with the consumption of a product, it can be said that the private benefit to the consumer ____ the relative importance of this product to society and output should ____ to move toward the efficient situation
a. overstates; increase b. understates; increase c. overstates; decrease d. understates; decrease
A socially optimal equilibrium occurs when: a. the marginal social cost of a given level of output is equal to the marginal social benefit. b. the marginal private cost of a given level of output is equal to the marginal social benefit. c. the marginal revenue from a unit of a good equals the marginal cost of production
d. the average revenue from a unit of a good equals the marginal cost of production.