An open market _______ of $100 million of securities ______
A. purchase; increases bank reserves
B. sale; increases bank reserves
C. purchase; decreases the Fed's liabilities
D. sale; increases the Fed's liabilities
A When the Fed purchases government securities, it effectively pays for (at least part of) the purchasing by increasing banks' reserves.
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The marketing of the first ballpoint pen by Milton Reynolds showed
A) that being the first firm to market a new product can result in a natural monopoly. B) that first-mover advantages can make it more difficult for new firms to enter a market and compete against the first mover. C) how important it is to receive patent protection for a new product. D) that being the first firm to market a product may not lead to a long-lived advantage over later entrants into the market.
Everything else held constant, a weaker dollar will likely hurt
A) textile exporters in South Carolina. B) wheat farmers in Montana that sell domestically. C) automobile manufacturers in Michigan that use domestically produced inputs. D) furniture importers in California.