The immediate effect of a member bank's sale of U.S. government securities to the Fed is
a. an increase in that bank's required reserves.
b. a decrease in that bank's required reserves.
c. an increase in that bank's excess reserves.
d. a decrease in that bank's excess reserves.
C
You might also like to view...
Which of the following is true?
a. Patents reduce a firm's incentive to develop new products. b. Patents are given for new works of art or literature. c. Patents give a permanent exclusive right to produce a new good. d. Patents give a temporary exclusive right to produce a new good. e. Patents guarantee economic profits.
If Brazil can produce 5 shirts or 4 pounds of beef in a day, and Uruguay can produce 10 shirts or 2 pounds of beef in a day, then Brazil has a comparative advantage in the production of beef
a. True b. False Indicate whether the statement is true or false