When the Fed buys a U.S. bond in the open market Question 11 options: it has no

ID: 1100782 • Letter: W

Question

When the Fed buys a U.S. bond in the open market

Question 11 options:

it has no effect on total reserves or the money supply since the check it receives increases reserves at one bank but reduces them at another.

it affects total reserves but not the money supply.

it contracts total reserves and the money supply.

it expands total reserves and the money supply.

it has no effect on total reserves or the money supply since the check it receives increases reserves at one bank but reduces them at another.

it affects total reserves but not the money supply.

it contracts total reserves and the money supply.

it expands total reserves and the money supply.

it expands total reserves and the money supply.

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