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Sublight2097 Sublight2097
wrote...
Posts: 4132
8 years ago
A purchase of government bonds from the public by the Federal Reserve Banks
A) adds to the money stock.
B) has the effect of pulling wealth and therefore money out of the private sector.
C) increases the money stock directly and simultaneously increases commercial bank reserves.
D) puts additional reserves into the commercial banking system.
E) reduces the wealth of the public.
Textbook 
The Economic Way of Thinking

The Economic Way of Thinking


Edition: 13th
Authors:
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VincenzoDVincenzoD
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Posts: 1913
8 years ago
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Sublight2097 Author
wrote...
8 years ago
I've noticed they use a lot of trickery with their questions. Thank you for your input.
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