When the Fed purchases artwork to decorate the conference room at the Federal Reserve Bank of Kansas City,
A) reserves rise, but the monetary base falls.
B) reserves fall.
C) currency in circulation falls.
D) the monetary base rises.
Answer: D
When the Fed purchases artwork to decorate the conference room at the Federal Reserve Bank of Kansas City,
A) reserves rise, but the monetary base falls.
B) reserves fall.
C) currency in circulation falls.
D) the monetary base rises.