Author Question: When the Fed purchases government securities from a commercial bank, the bank: a. automatically ... (Read 90 times)

cool · **on:** Jun 30, 2018

When the Fed purchases government securities from a commercial bank, the bank:
a. automatically becomes poorer.
b. loses equity in the Fed.
c. receives reserves that can be used to make additional loans.
d. loses its ability to make loans.

Question 2

Which of the following is most likely to have contributed to better inventory management?
a. Stability in the market demand
b. Stability in the average price level
c. Perfect forecasting by the firms
d. Reduced variability in the input costs
e. Improvements in information technology and communication