Refer to Table 18-9. Calculate the income tax paid by Sylvia, a single taxpayer with an income of $70,000

When the Fed purchases government securities from a commercial bank, the bank

a. loses its ability to make loans. b. automatically becomes poorer. c. loses equity in the Fed. d. receives reserves that can be loaned out.

The Fed's purchase and sale of government securities is known as

a. margin operations. b. open market operations. c. bank reserve operations. d. cash management operations.