Multiple Choice
When the Fed buys U.S. government securities from a bank, the Fed
A) decreases the monetary base and raises the federal funds rate.
B) increases the bankʹs reserves at the Fed.
C) obtains the money for the purchase from the U.S. Treasury.
D) loans the money needed to buy the securities to the bank.
Correct Answer:

Verified
Correct Answer:
Verified
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