Multiple Choice
The effect of an open market purchase on reserves differs depending on how the seller of the bonds keeps the proceeds.If the proceeds are kept in ________,the open market purchase has no effect on reserves; if the proceeds are kept as ________,reserves increase by the amount of the open market purchase.
A) deposits; deposits
B) deposits; currency
C) currency; deposits
D) currency; currency
Correct Answer:
Verified
Correct Answer:
Verified
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