Multiple Choice
Scenario: The following table shows the initial balance sheets of Bank A and the Fed. Suppose that the Fed then buys $10 million in bonds from Bank A.
-Refer to the scenario above.After this transaction,Bank A's deposits ________ and reserves ________.
A) increase by $10 million; increase by $10 million
B) increase by $10 million; decrease by $10 million
C) remain unchanged; decrease by $10 million
D) remain unchanged; increase by $10 million
Correct Answer:
Verified
Correct Answer:
Verified
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