Cecilia Everett

Business

13 June, 07:51

Suppose the Fed decides to buy bonds and the New Hampshire Colonial Bank

decides to sell $10 million worth of bonds. What will New Hampshire Colonial

Bank most likely be able to do?*

A) Borrow more reserves at the "discount window"

B) Make new loans totaling about $10 million

C) Borrow more reserves from other banks

D) Reduce its outstanding loans by $10 million

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