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 assets ________ and liabilities ________.
A) increase by $10 million; decrease by $10 million
B) remain unchanged; decrease by $10 million
C) increase by $10 million; remain unchanged
D) remain unchanged; remain unchanged

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 assets ________ and liabilities ________.
A) increase by $10 million; decrease by $10 million 
B) remain unchanged; decrease by $10 million 
C) increase by $10 million; remain unchanged 
D) remain unchanged; remain unchanged

Quizplus · Accepted Answer

The Answer of 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 assets ________ and liabilities ________.
A) increase by $10 million; decrease by $10 million 
B) remain unchanged; decrease by $10 million 
C) increase by $10 million; remain unchanged 
D) remain unchanged; remain unchanged

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