Results to the T-account entries for the Federal Reserve

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1. An open market purchase of a $100 government security from a bank results to the T-account entries for the Federal Reserve of

A. plus $ 100 in securities and plus $ 100 in reserves.+

B. -$ 100 in securities and and –$100 in reserves.

C. +$100 in securities and –$100 in reserves.

D. –$100 in securities and +$100 in reserves.

2. An open market sale of a $100 to a bank results to the T-account entries for the Banking System of

A. -$100 in securities and +$100 in reserves.

B. -$100 in securities and -$100 in reserves.

C. +$100 in securities and -$100 in reserves.

D. +$100 in securities and +$100 in reserves.

Reference no: EM131621944

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