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