question archive An open market purchase A
An open market purchase A
Subject:EconomicsPrice:2.88 Bought3
An open market purchase
A. reduces the Fed's holdings of securities, as does an open market sale.
B. reduces the Fed's holdings of securities, but an open market sale increases the Fed's holdings of securities.
C. increases the Fed's holdings of securities, but an open market sale reduces the Fed's holdings of securities.
D. increases the Fed's holdings of securities, as does an open market sale.
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C. increases the Fed's holdings of securities, but an open market sale reduces the Fed's holdings of securities.
At the point when the Fed makes an open market purchase of securities the Fed's possessions of securities from public and commercial banks increments at the same time, the number of reserves held by the commercial banks additionally Increases, and thus the money supply increases in the economy.
