Table 29-1 Effects of an Open-Market Transaction on the Balance Sheets of Sheets

Multiple Choice

Table 29-1
Effects of an open-market transaction on the balance sheets of banks and the fed (in millions of dollars) ​
-In Table 29-1, the Federal Reserve System has

A) sold $10 million in government securities to banks, taking payment in cash.
B) sold $10 million in government securities to banks, taking payment from the bank's reserves.
C) purchased $10 million in government securities from banks, paying for them with increases in banks' reserves.
D) purchased $10 million in government securities from banks, paying for them with new Federal Reserve notes.