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Macroeconomics

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Moderate

Banks and the Money Supply

MACRO-JJXM4M

When the commercial bank TrustInUs sells $100 of mortgage-backed securities to the Fed, how is its balance sheet affected?

A

TrustInUs's loans increase.

B

TrustInUs's deposits increase.

C

TrustInUs can make more loans.

D

TrustInUs's assets increase.

E

TrustInUs's reserves increase.