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vellojo vellojo
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7 years ago
The Fed buys $100 million of government securities from Bank A. What is the effect on the Federal Reserve's balance sheet?
A) Securities increase by $100 million and reserves of Bank A increase by $100 million.
B) Securities decrease by $100 million and reserves of Bank A increase by $100 million.
C) Securities increase by $100 million and Federal Reserve notes (currency) decrease by $100 million.
D) Securities increase by $100 million and reserves of Bank A decrease by $100 million.
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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Studying economics @ Edinburgh U
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amishamish
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7 years ago
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vellojo Author
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#2
7 years ago
Thank you for this

Comes at the right time too!

Good luck on your exams
Studying economics @ Edinburgh U
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