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Author Question: The Fed buys 100 million of government securities from Bank A. What is the effect on Bank A's ... (Read 82 times)

shenderson6

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on: Jun 29, 2018
The Fed buys 100 million of government securities from Bank A. What is the effect on Bank A's balance sheet?
 
  A) Securities decrease by 100 million and reserves increase by 100 million.
  B) Securities decrease by 100 million and deposits decrease by 100 million.
  C) Securities increase by 100 million and reserves decrease by 100 million.
  D) Securities increase by 100 million and reserves increase by 100 million.

Question 2

All of the following lead to more rapid economic growth EXCEPT
 
  A) restricting international trade.
  B) encouraging higher rates of saving.
  C) supporting more research and development.
  D) encouraging higher quality education.


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DylanD1323

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

A


shenderson6

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

Perkypinki

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Reply 3 on: Yesterday
Excellent

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