Which of the following happens if the Fed buys bonds from a private bank?
A) The Fed's total liabilities remain unaffected.
B) The private bank's total assets remain unchanged.
C) The private bank's composition of assets remain unchanged.
D) The Fed's total assets decrease.
B
Economics
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When a rise in the price of one item results in a decrease in the demand for another good, then the two goods are
A) substitute goods. B) complementary goods. C) inferior goods. D) satisfying the law of supply.
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Asymmetric information will always cause
A) efficiency problems. B) equity problems. C) Both A and B. D) None of the above.
Economics