Author Question: Bank reserves will increase over time when: a. the Fed sells government securities on the open ... (Read 40 times)

asd123 · **on:** Jun 30, 2018

Bank reserves will increase over time when:
a. the Fed sells government securities on the open market.
b. the Treasury sells government securities on the open market.
c. depositors take funds out of their checkable deposit accounts.
d. the Fed buys government securities on the open market.
e. the Fed lowers the discount rate.

Question 2

When the Fed buys federal government securities on the open market from commercial banks, then, over time, the:
a. assets of these banks fall.
b. assets of the banks stay the same.
c. assets of the banks rise.
d. liabilities of the bank rise.
e. liabilities of the bank fall.