An open market sale of U.S. Treasury securities by the Fed will cause the Fed's balance sheet to show:
A. an increase in the asset category of securities and the liability category of reserves.
B. a decrease in the asset of securities and a decrease in the liability of reserves.
C. no change in the size of the balance sheet, just the composition of assets will change from securities to cash.
D. an increase in the liability of reserves.
Answer: B
You might also like to view...
Which of the following statements about stock market brokers and dealers is TRUE?
A) Brokers earn commissions from trading stocks but dealers try to profit from trading stocks. B) Brokers try to profit from trading stocks but dealers earn commissions from trading stocks. C) Both brokers and dealers earn commissions from trading stocks. D) Both brokers and dealers try to profit from trading stocks.
According to U.S. Census Bureau data, approximately how many illegal immigrants are estimated to be living continuously in the United States?
A. 5 million. B. 11 million. C. 23 million. D. 30 million.