Question

The Fed buys $100 million U.S. government securities from Bank of America. Bank of America's balance sheet shows this transaction as ________ in total assets and ________ in reserves.
A) no change; a $100 million decrease
B) no change; a $100 million increase
C) a $100 million increase; no change
D) a $100 million increase; a $100 million increase
E) a $100 million decrease; a $100 million decrease

Answer

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