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    Principles of Money Banking
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    Exam 20: Understanding Movements in Bank Reserves
  5. Question
    When a Commercial Bank Borrows from the Federal Reserve
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When a Commercial Bank Borrows from the Federal Reserve

Question 40

Question 40

Multiple Choice

When a commercial bank borrows from the Federal Reserve,


A) Treasury liabilities rise.
B) Treasury assets rise.
C) Federal Reserve assets rise.
D) bank reserves fall.

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