Multiple Choice
When the U.S. Treasury purchases gold from a member of the non-bank public, the immediate effect is that __________ and __________.
A) reserves increase; currency in circulation decreases
B) reserves decrease; currency in circulation increases
C) reserves increase; Treasury deposits decrease
D) reserves decrease; Treasury deposits increase
Correct Answer:
Verified
Correct Answer:
Verified
Q20: When the Fed receives an inflow of
Q21: Which of the following situations is likely
Q22: Repurchase agreements are often used to<br>A) increase
Q23: Federal Reserve credit is equal to bank
Q24: The bank reserve equation is the<br>A) assets
Q26: Reverse repurchase agreements are often used to<br>A)
Q27: Immediately after being collected, taxes are deposited
Q28: Which of the following is a correct
Q29: The monetary base is equal to<br>A) Fed
Q30: An increase in shipments of currency from