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NeX [460]
3 years ago
10

When the Federal Reserve decreases bank's reserves through an open-market operation: ____________

Business
1 answer:
Sedbober [7]3 years ago
8 0

Answer:

d. the monetary base decreases, loans decrease, and the money supply decreases.

Explanation:

In the case when the federal reserve reduce the reserve of the bank via open market operation so it would be resulted in decrease in the monetary base, reduction in the loan and the reduction in the money supply. Overall, all three things would be decrease

Therefore as per the given situation, the option d is correct

And the same would be  relevant

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