1. An open market purchase of a $100 government security from a bank results to the T-account entries for the Federal Reserve of
A. plus $ 100 in securities and plus $ 100 in reserves.+
B. -$ 100 in securities and and –$100 in reserves.
C. +$100 in securities and –$100 in reserves.
D. –$100 in securities and +$100 in reserves.
2. An open market sale of a $100 to a bank results to the T-account entries for the Banking System of
A. -$100 in securities and +$100 in reserves.
B. -$100 in securities and -$100 in reserves.
C. +$100 in securities and -$100 in reserves.
D. +$100 in securities and +$100 in reserves.