When the Fed sells government securities, the banks':
A. reserves will increase and lending will expand causing an increase in the money supply.
B. reserves will decrease and lending will contract causing a decrease in the money supply.
C. reserve requirements will increase and lending will contract causing a decrease in the money supply. D. reserves/deposit ratio will increase and lending will expand causing an increase in the money supply.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “When the Fed sells government securities, the banks': A. reserves will increase and lending will expand causing an increase in the money ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Factoring is the process ofa. determining the percentage of accounts receivable expected to be collected. b. selling accounts receivable at a discount to another party. c. determining the average collection period. d.
Answers (1)
The following information was taken from Wildhorse Co. cash budget for the month of July: Beginning cash balance $135000 Cash receipts 130000 Cash disbursements 184000 If the company has a policy of maintaining an end of the month cash balance of
Answers (1)
The appearance of a used car can be deceptive. when purchasing a used vehicle, it is a good idea to
Answers (1)
The entry to record a purchase of $5,000 on account, terms of 2/10, n/30, would include a
Answers (2)
You are a general manager of a firm that manufactures personal computers. Due to a soft economy, demand for PCs has dropped 50 percent from the previous year.
Answers (1)
New Questions in Business
A bond is aa. financial intermediary. b. certificate of indebtedness. c. certificate of partial ownership in an enterprise. d. None of the above is correct.
Answers (1)
Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days.
Answers (1)
Lesa drives her car approximately 18,000 miles per year. During the most recent year, she drove 7,000 miles commuting to and from work, 4,500 miles for business-related conferences and client visits, and 6,500 miles for personal trips.
Answers (1)
Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 42%. The T-bill rate is 6%. Your client chooses to invest 85% of a portfolio in your fund and 15% in a T-bill money market fund. a.
Answers (2)
A firm has zero debt in its capital structure and has an overall cost of capital of 10 percent. The firm is considering a new capital structure with 60 percent debt at an interest rate of 8 percent.
Answers (1)