Open market operations have different effects. Evaluate which of these statements is inaccurate about the effect of open market operations. a. Selling government securities increases cash reserves with the central bank b. In times of excessive demand, central banks sell government securities c. Cash reserves have an effect on the volume of cash reserves d. Purchases of government securities by the central bank increase cash reserves
Open market operations have different effects. Evaluate which of these statements is inaccurate about the effect of open market operations. a. Selling government securities increases cash reserves with the central bank b. In times of excessive demand, central banks sell government securities c. Cash reserves have an effect on the volume of cash reserves d. Purchases of government securities by the central bank increase cash reserves
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Open market operations have different effects. Evaluate which of these statements is inaccurate about the effect of open market operations.
a.
Selling government securities increases cash reserves with the central bank
b.
In times of excessive
c.
Cash reserves have an effect on the volume of cash reserves
d.
Purchases of government securities by the central bank increase cash reserves
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