The initial impact of the Fed's open market sale of government securities to banks is
A) an increase in the quantity of money by some multiple of the dollar volume of the sale.
B) an increase in bank deposits at the Fed.
C) a decrease in the quantity of money by some multiple of the dollar volume of the sale.
D) a decrease of the banking system's reserve deposits at the Fed.
Question 2
Savings is an important factor influencing economic growth because saving
A) can finance new investment and capital formation.
B) helps the economy maintain the current level of total expenditures when a recession begins.
C) provides a fund for wages needed from any unexpected population growth.
D) All of the above answers are correct.
(A) Closed (or simple) fracture and (B) open (or compound) fracture.
Joseph Banks
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