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The Immediate Effect of a Bank's Purchase of U

Question 60

Multiple Choice

The immediate effect of a bank's purchase of U.S.government securities from the Fed is a(n) :


A) decrease in the bank's assets.
B) increase in the bank's assets.
C) decrease in the Fed's assets.
D) increase in the Fed's assets.
E) decrease in both the bank's and the Fed's assets.

Correct Answer:

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