When the Fed purchases government securities from a commercial bank, the bank
a. loses its ability to make loans.
b. automatically becomes poorer.
c. loses equity in the Fed.
d. receives reserves that can be loaned out.
d
Economics
You might also like to view...
To maintain their economic profits, firms in monopolistic competition must continually engage in
A) product innovation and development. B) lowering their product's price. C) raising their product's price. D) realizing short-run losses. E) making the demand for their product more elastic.
Economics
A major theme in economics is:
a. People can increase resources by limiting their economic wants b. People have limited economic wants and limited resources c. People have unlimited economic wants, but limited resources d. Unlimited resources and unlimited economic wants
Economics