Time management is very much important in IIT JAM. The eduncle test series for IIT JAM Mathematical Statistics helped me a lot in this portion. I am very thankful to the test series I bought from eduncle.
Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
Indu Dhiman posted an Question
May 12, 2021 • 22:27 pm
![]()
30 points
30 points
- UGC NET
- Economics
Question : 8/50 unit solved papers (1-10) - economics open market sales reserves and the monetary base thereby the lower, lowering; money supply raise raising;
Question : 8/50 Unit Solved Papers (1-10) - Economics Open market sales reserves and the monetary base thereby the lower, lowering; money supply raise raising; money supply lower; lowering; money multiplier raise; raising; money multiplie View Solution
1 Answer(s)
Answer Now
- 0 Likes
- 2 Comments
- 0 Shares
Do You Want Better RANK in Your Exam?
Start Your Preparations with Eduncle’s FREE Study Material
- Updated Syllabus, Paper Pattern & Full Exam Details
- Sample Theory of Most Important Topic
- Model Test Paper with Detailed Solutions
- Last 5 Years Question Papers & Answers
Sign Up to Download FREE Study Material Worth Rs. 500/-
Reshma gupta![best-answer]()
Open Market Purchase Suppose that the Fed decides to purchase $100 of securities from the banking system To do this, the Fed simply creates reserves – it credits the banking system with reserves in exchange for the securities. For the Fed: Assets - Securities +$100 Liabilities- Reserves +$100 For the banking system as a whole: Assets -Securities -$100 Reserves +$100 liabilities- 0 An open market purchase increases reserves (and hence the monetary base), while a sale does the opposite. so open market sales decrease reserves and lowering the monetary base( currency+ reserves) money supply.