An increase in U.S. Treasury deposits at the Fed reduces both ________ and the ________.
A) reserves; monetary base
B) Fed liabilities; money multiplier
C) Fed assets; monetary base
D) Fed assets; money multiplier
Answer: A
An increase in U.S. Treasury deposits at the Fed reduces both ________ and the ________.
A) reserves; monetary base
B) Fed liabilities; money multiplier
C) Fed assets; monetary base
D) Fed assets; money multiplier