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When the Fed Sells Government Securities to a Bank, How

Question 104

Multiple Choice

When the Fed sells government securities to a bank, how are the Fedʹs assets affected?


A) The amount of the Fedʹs government securities decreases.
B) The amount of reserves held at the Fed increases.
C) The amount of the Fedʹs government securities increases.
D) The amount of reserves held at the Fed decreases.

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