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Author Question: An open-market purchase of securities by the Fed results in ________ in reserves and ________ in the ... (Read 42 times)

Wadzanai

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Question 1

When the Fed raises the required reserve ratio, the banks' excess reserves will initially ________ and the money supply ________.


◦ remain constant; decreases
◦ decrease; decreases
◦ increase; remain constant
◦ increase; increases

Question 2

An open-market purchase of securities by the Fed results in ________ in reserves and ________ in the supply of money.


◦ an increase; a decrease
◦ a decrease; a decrease
◦ an increase; an increase
◦ a decrease; an increase


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Marked as best answer by Wadzanai on Apr 19, 2019

sultana.d

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