Tom decides to withdraw $300 out of his checking account. The impact of this transaction on the Fed's balance sheet will be:
A. total assets decrease by $300 and the liability of currency increases by $300.
B. no change in total assets or total liabilities, but an increase in the liability of currency and a decrease in the liability of reserves by $300 respectively.
C. no change in total assets but the liability of currency increases by $300.
D. no change in either total assets or total liabilities.
Answer: B
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A movement upward along the consumption function can be caused only by a(n)
a. increase in disposable income. b. decrease in disposable income. c. decrease in the price level. d. increase in the price level.
The highest unemployment rate we experienced since the Great Depression was in
A. 1973. B. 1982. C. 1990. D. 2001.
The quantity demanded is called inelastic if a ______.
a. huge change in price causes a huge change in quantity demanded b. small change in price causes a small change in quantity demanded c. huge change in price causes only a small change in quantity demanded d. small change in price causes a huge change in quantity demanded
If a can of soda costs $1.00 today, how much would it cost in 12 months (1 year) if the prices go up by 50 percent per month?
A. about $130.00 B. about $7.00 C. about $6.00 D. about $24.00