Register
An open-market sale of securities by the Fed results in ________ in reserves and ________ in the supply of money.
336,689 views
36 votes
36 votes
An open-market sale of securities by the Fed results in ________ in reserves and ________ in the supply of money.

User Kunalbhat
by
3.2k points

1 Answer

19 votes
19 votes

Answer:

increase; increase

Step-by-step explanation:

In the case of the sale of securities in the open market, there is an increase in reserves also there is an increase in the supply of money as in the fed purchase and sells the securities in order to control the money supply and the rate of interest.

Therefore as per the given situation, the above should be the answers that could fill the blanks

User Edwardyao
by
2.7k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond is
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of answer choices bond interest is deductible for tax purposes. interest must be
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm
Link Copied!