Author Question: Which of the following will occur if the Fed buys 10 million of securities from the University ... (Read 36 times)

jlmhmf · **on:** Jun 29, 2018

Which of the following will occur if the Fed buys 10 million of securities from the University National Bank?

A) The Fed will pay by increasing the University National Bank's deposit account with the Fed by 10 million.
B) The University National Bank has 10 million more in securities.
C) The Fed will pay by decreasing the University National Bank's deposit account with the Fed by 10 million.
D) The University National Bank has 10 million less in excess reserves.

Question 2

In the figure above, the tariff ________ the domestic production of shirts in the United States by ________ per year.

A) increases; 8 million
B) decreases; 16 million
C) increases; 4 million
D) decreases; 8 million