The U. S. Treasury maintains accounts at commercial banks. What would be the consequences for the money supply if the Treasury shifted funds from one of those banks to the Fed? Answer yes or no to each of the following:A. The decrease in reserves would also appear on the Fed's balance sheet, but would be offset by an increase in the government's account. unansweredB. The balance sheet for the bank would reflect a decrease in reserves and a decrease in deposits. unansweredC. The decline in bank reserves would decrease the quantity of money. unansweredD. The balance sheet for the bank would reflect an increase in reserves and an increase in deposits. unansweredE. The increase in reserves would also appear on the Fed's balance sheet, but would be offset by a decrease in the government's account. unansweredF. The rise in bank reserves would increase in the quantity of money.
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Home » Business » The U. S. Treasury maintains accounts at commercial banks. What would be the consequences for the money supply if the Treasury shifted funds from one of those banks to the Fed? Answer yes or no to each of the following:A.