As a result of the Fed s sale of 8 000 worth of government

Last updated: 2/10/2024

As a result of the Fed s sale of 8 000 worth of government securities to First Main Street Bank the bank becomes reserve deficient Suppose that Sharon a First Main Street Bank s customer re pays back the 8 000 loan she took out a few months ago Which of the following most accurately describes First Main Street Bank s actions O The bank creates a 8 000 loan O The bank keeps the 8 000 as reserves The bank keeps the 1 200 as reserves The bank creates a 187 000 loan The money supply in the economy is s