question archive When the Federal Reserve sells a government security to a commercial bank the cash reserves of: a

When the Federal Reserve sells a government security to a commercial bank the cash reserves of: a

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When the Federal Reserve sells a government security to a commercial bank the cash reserves of:

a. The commercial bank decrease,

b. The net worth of the commercial bank increases,

c. The loans of the commercial bank will increase,

d. The balance sheet of the commercial bank is thrown off balance.

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