An open market sale of U.S. Treasury securities by the Fed will cause the Banking System's balance sheet to show:
A. Only an increase in liabilities.
B. Only a decrease in assets.
C. No net change in assets or liabilities, only a change in the composition of assets with securities decreasing and reserves increasing.
D. No net change in assets or liabilities, only a change in the composition of assets with securities increasing and reserves decreasing.
Answer:D
An open market sale of U.S. Treasury securities by the Fed will cause the Banking System's balance sheet to show:
A. Only an increase in liabilities. B. Only a decrease in assets. C. No net change in assets or liabilities, only a change in the composition of assets with securities decreasing and reserves increasing. D. No net change in assets or liabilities, only a change in the composition of assets with securities increasing and reserves decreasing.