Open market purchase will result in:
A) increase in bank reserves and a decrease in the federal funds rate.
B) increase in bank reserves and an increase in the federal funds rate.
C) decrease in bank reserves and a decrease in the federal funds rate.
D) decrease in bank reserves and an increase in the federal funds rate.
A
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Jenny took out a loan of $27,000 from All Union Bank. She deposited the amount in her savings account in Smith and Kim Bank. In the given scenario, which of the following statements is true? a. $27,000 will be an asset for Smith and Kim Bank, while $27,000 will be a liability for All Union Bank. b. $27,000 will be a liability for Smith and Kim Bank, while $27,000 will be an asset for All Union
Bank. c. $27,000 will be an asset for both Smith and Kim Bank and All Union Bank. d. $27,000 will be a liability for both Smith and Kim Bank and All Union Bank.
Refer to the figures. Which figure(s) represent(s) a situation where firms are likely to hold inventories to accommodate unexpected changes in demand?
A. A only.
B. B only.
C. Both A and B.
D. Neither A nor B.