Author Question: If the Fed purchases securities in the amount of 100,000 from First Union Bank, then the A) ... (Read 34 times)

Chloeellawright · **on:** Jun 29, 2018

If the Fed purchases securities in the amount of 100,000 from First Union Bank, then the

A) liabilities of First Union decrease by 100,000.
B) assets of First Union Bank change in composition but not in amount.
C) assets of the Fed decrease by 100,000.
D) liabilities of the Fed change in composition but not in amount.
E) assets of First Union Bank decrease by 100,000.

Question 2

According to the law of one price

A) a company can only charge one price for a product, no matter which nation the product is sold in.
B) interest rates across nations should be the same when adjusted for exchange rates.
C) goods that are easily tradable across nations should sell for the same price expressed in a common currency.
D) the price of gold should differ between nations.