Which of the following statements about the
Federal Reserve’s balance sheet is correct?
A.
Open market operations do not affect the Fed’s balance
sheet
B.
The Fed can increase the size of its balance sheet through open
market purchases
C.
Loans to banks through the discount window do not affect
the Fed’s balance sheet
D.
The Fed can decrease the size of its balance sheet through open
market purchases
Which of the following statements about the Federal Reserve’s balance sheet is correct? A. Open market operations do n
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