Solved

When the Federal Reserve Sells a Government Security to a Bond

Question 46

Multiple Choice

When the Federal Reserve sells a government security to a bond dealer, which transmits payment from a transactions deposit account at a bank


A) the cash of the Federal Reserve will decrease.
B) the net worth of the commercial bank will decrease.
C) the loans of the commercial bank will increase.
D) the money supply will decrease.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions