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    Financial Markets and Institutions Study Set 1
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    Exam 10: Conduct of Monetary Policy: Tools, Goals, Strategy, and Tactics
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    An Open Market Sale Leads to an Expansion of Reserves
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An Open Market Sale Leads to an Expansion of Reserves

Question 81

Question 81

True/False

An open market sale leads to an expansion of reserves and deposits in the banking system and hence to a decline in the monetary base and the money supply.

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