When the Federal Reserve System buys government securities on the open market, Group of answer choices a. Bank reserves decrease. b. Bank reserves increase. c. The national debt increases. d. Bank deposits decrease. e. Interest rates rise.
When the Federal Reserve System buys government securities on the open market, Group of answer choices a. Bank reserves decrease. b. Bank reserves increase. c. The national debt increases. d. Bank deposits decrease. e. Interest rates rise.
Chapter13: Money And The Financial System
Section: Chapter Questions
Problem 2.8P
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31. When the Federal Reserve System buys government securities on the open market,
Group of answer choices
a. Bank reserves decrease.
b. Bank reserves increase.
c. The national debt increases.
d. Bank deposits decrease.
e. Interest rates rise.
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