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20 August, 08:55

By definition, when the Fed conducts an open market purchase, it is:

A. decreasing the quantity of reserves.

B. buying bonds.

C. increasing the quantity of reserves.

D. selling bonds.

E. Both B and C are correct.

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Answers (2)
  1. 20 August, 09:02
    0
    C. increasing the quantity of reserves
  2. 20 August, 09:10
    0
    buying bonds and increasing the quantity of reserves
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