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Scenario: the Following Table Shows the Initial Balance Sheets of Bank

Question 43

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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.
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,the Fed's reserves ________ and Treasury bonds ________. A) increase by $10 million; increase by $10 million B) increase by $10 million; decrease by $10 million C) decrease by $10 million; decrease by $10 million D) decrease by $10 million; increase by $10 million
-Refer to the scenario above.After this transaction,the Fed's reserves ________ and Treasury bonds ________.


A) increase by $10 million; increase by $10 million
B) increase by $10 million; decrease by $10 million
C) decrease by $10 million; decrease by $10 million
D) decrease by $10 million; increase by $10 million

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