Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 27, Problem 7MCQ
To determine

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Whether a sale or purchase of open market of $100 million of securities could increase bank reserves or decrease Fed's liabilities.

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When banks have deposits in checking accounts with the Fed, these deposits for the bank are __________________ of the commercial bank   a. Liabilities   b. Assets   c. Net Worth   d. Equity
1. The primary purpose of a central bank is to control a nation’s:___________. 2. The Fed’s largest single liability is the: _ asset not related to monetary ____________ .___________. 3. A Fed asset not related to monetary policy is ___________________________. 4. The Federal Reserve controls ___________________.1. The FOMC or _____________has __________ members. 2. The document by which the FOMC instructs the trading desk is called a ______________. 3. Among U.S. commercial banks, all __________banks are members of the Federal Reserve System while some ____________banks are members. 4. Total reserves equal required reserves plus _____________. 1. There are __________federal reserve banks.  2. Borrowing from the Fed is called “___________________ “.  3. A Fed asset not related to monetary policy is _________________________.  4. The document by which the FOMC instructs the trading desk is called a 1. Which of the following…
42) An open-market purchase of securities by the Bank of England results in ________ in reserves and ________ in the supply of money.      A) an increase; an increase B) a decease; an increase C) an increase; a decrease D) a decrease; a decrease
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