Which of the following will occur if the Fed buys $10 million of securities from the University National Bank?
A) The Fed will pay by increasing the University National Bank's deposit account with the Fed by $10 million.
B) The University National Bank has $10 million more in securities.
C) The Fed will pay by decreasing the University National Bank's deposit account with the Fed by $10 million.
D) The University National Bank has $10 million less in excess reserves.
A
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A decrease in the quantity of reserves held by commercial banks could be the result of
A) a decision by U.S. households to hold less currency. B) the sale of government securities by the Federal Reserve. C) a decrease in the government's budget deficit. D) an increase in the exchange rate.
One reason for the success that firms have in getting the government to erect and maintain barriers to foreign competition is members of Congress who engage in ________, where members in districts with protected industries agree to trade votes on issues
that concern other members in order to uphold tariffs. A) vote fixing B) gerrymandering C) logrolling D) filibustering