If the Fed buys securities worth $10 million, then

A) bank reserves will increase by $10 million.
B) bank reserves will decrease by $10 million.
C) currency in circulation will increase by $10 million.
D) bank holdings of securities increase by $10 million.


A

Economics

You might also like to view...

In the United States today, the government will exchange gold or silver for paper money

Indicate whether the statement is true or false

Economics

The main examples of macroeconomic coordination failures are

a. profit declines. b. relative price changes. c. recessions and depressions. d. consumer taste changes.

Economics

The price of a stock will decrease, ceteris paribus, when

A. The supply of the stock decreases. B. Future earnings expectations increase. C. There is a shortage of the stock at the current price. D. The interest rate increases.

Economics

You can conclude from the above graph that


A. new firms will enter the industry.
B. existing firms will leave the industry.
C. the industry is in long run equilibrium.
D. it is unclear whether the industry is in the short run or the long run.

Economics