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Which One of the Following Would Increase Reserves for the Banking

Question 40

Multiple Choice

Which one of the following would increase reserves for the banking system?


A) The Fed sells government securities on the open market.
B) The Fed buys government securities on the open market.
C) You take $100 out of a checking account and then deposit the same amount in a savings account.
D) You purchase a U.S. Treasury bond from a bond dealer.

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