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 bonds equal ________.
A) $90 million
B) $100 million
C) $110 million
D) $120 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 bonds equal ________.
A) $90 million 
B) $100 million 
C) $110 million 
D) $120 million

Quizplus · Accepted Answer

Bank A issued $100 million in bonds and received $90 million in cash. Therefore, Bank A's bonds equal $90 million.

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