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    Essential Foundations of Economics Study Set 1
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    Exam 18: Money and the Monetary System
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    When the Fed Buys Government Securities,the Immediate Effect of the Purchase
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When the Fed Buys Government Securities,the Immediate Effect of the Purchase

Question 350

Question 350

Multiple Choice

When the Fed buys government securities,the immediate effect of the purchase is that banks'


A) reserves increase.
B) deposits increase.
C) assets increase.
D) reserves decrease.
E) loans decrease.

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