If the Fed decides to sell $10 million in securities and the Paris First National Bank writes out a $10 million check to purchase these securities, then the
a. Paris First National Bank now has $10 million more of excess reserves at the Fed
b. Paris First National Bank has $10 million fewer reserves
c. Fed has increased its asset position by $20 million
d. Fed has reduced its asset position by $20 million
e. money supply will likely increase due to the economy's inflationary phase
B
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A photograph processing machine company requiring customers who buy a processing machine to purchase chemicals and photographic paper from it is an example of
A) bundling. B) a requirement tie-in sale. C) quantity discrimination. D) a two-part tariff.
Collusion among firms to raise price is rare in monopolistically competitive markets because
a. there are too many firms b. there are too few firms c. there is only one firm d. products are homogeneous e. price leadership is used instead