1) When the Fed purchases U.S. treasury securities, bank reserves will Select one: A. expand and...

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1) When the Fed purchases U.S. treasury securities, bank reserves will Select one: A. expand and...

1) When the Fed purchases U.S. treasury securities, bank reserves will Select one: A. expand and the fed funds rate will rise. B. contract and the fed funds rate will rise. C. expand and the fed funds rate will fall. D. contract and the fed funds rate will fall.

2) Open market operations may be best described as the FOMCs buying or selling of Select one: A. U.S. government securities in the financial markets. B. foreign currencies in foreign exchange markets. C. federal notes and bonds directly from the U.S. Treasury. D. all of the above.

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