An open-market purchase by the Federal Reserve injects excess ...

[lbcchick]

An open-market purchase by the Federal Reserve injects excess reserves into the banking system and allows the money supply to expand.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Most of the Fed's assets are held in the form of loans to its member banks.
 a. True
  b. False
  Indicate whether the statement is true or false

[T4T]

Answer to Question 1

True

Answer to Question 2

False

[lbcchick]

Excellent

[Mochi]

Gracias!