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,Bank A's reserves equal ________.
A) $10 million
B) $20 million
C) $30 million
D) $40 million

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,Bank A's reserves equal ________.
A) $10 million 
B) $20 million 
C) $30 million 
D) $40 million

Quizplus · Accepted Answer

Without the specific details of the scenario, it's impossible to accurately determine how Bank A's reserves would be affected by the transaction mentioned. The correct answer would depend on the initial amount of reserves Bank A had, the nature of the transaction, and how it impacts the bank's reserves according to banking regulations and practices.

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