If Bank A sells a $100,000 U.S. Treasury bond to the Fed, Bank A's reserves will:
A. Increase by $100,000.
B. Increase by less than $100,000.
C. Not change.
D. Decrease.
Answer:A
If Bank A sells a $100,000 U.S. Treasury bond to the Fed, Bank A's reserves will:
A. Increase by $100,000. B. Increase by less than $100,000. C. Not change. D. Decrease.