Scenario: The following table shows the initial balance sheets of Bank A and the Fed. Suppose that the Fed then buys $10 million in bonds from Bank A.

-Refer to the scenario above.After this transaction,the Fed's Treasury bonds equal ________.
A) $380
B) $390
C) $400
D) $410

Question

Scenario: The following table shows the initial balance sheets of Bank A and the Fed. Suppose that the Fed then buys $10 million in bonds from Bank A.
 
-Refer to the scenario above.After this transaction,the Fed's Treasury bonds equal ________.
A) $380 
B) $390 
C) $400 
D) $410

Quizplus · Accepted Answer

Without the specific details of the scenario, it's impossible to accurately determine how the Fed's Treasury bonds would change. However, if the correct answer is D) $410, it suggests that in the scenario, the Fed's holdings of Treasury bonds increased or are valued at $410 after the transaction. This could be due to purchasing bonds, a revaluation of existing bonds, or another transaction that increased the Fed's Treasury bond holdings to this amount.

Scenario: the Following Table Shows the Initial Balance Sheets of Bank