Which of the following events do NOT change the total size of the monetary base? OA. The Federal Reserve purchases a short-term bond from TerpBank in an open market operation OB. TerpBank gets into solvency problems and receives an emergency loan from the Fed at the discount window OC. TerpBank settles its customers' transactions with customers at other banks OD. None of these events change the monetary base

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter27: Issues In Macroeconomic Theory And Policy
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Please see attachment and type out the correct answer ASAP with proper explanation of the each option given within 40 50 minutes .

Which of the following events do NOT change the total size of the monetary base?
OA. The Federal Reserve purchases a short-term bond from TerpBank in an open market operation
B. TerpBank gets into solvency problems and receives an emergency loan from the Fed at the discount window
C. TerpBank settles its customers' transactions with customers at other banks
OD. None of these events change the monetary base
Transcribed Image Text:Which of the following events do NOT change the total size of the monetary base? OA. The Federal Reserve purchases a short-term bond from TerpBank in an open market operation B. TerpBank gets into solvency problems and receives an emergency loan from the Fed at the discount window C. TerpBank settles its customers' transactions with customers at other banks OD. None of these events change the monetary base
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