Question: 1- Bank reserves are increased when the Treasury: Answer sells government bonds to individuals decreases its holding of cash increases its account at a Federal

1- Bank reserves are increased when the Treasury: Answer

sells government bonds to individuals
decreases its holding of cash
increases its account at a Federal Reserve bank
increases its holding of cash

2- A primary focus of the Economic Stabilization Act of 2008, which became know as the ___________________________, was to allow the U.S. Treasury purchase up to $700 billion of troubled or toxic assets held by financial institutions. Answer

Troubled Asset Relief Program (TARP)
Toxic Asset Recovery Program (TARP)
Troubled Area Relief Program (TARP)
Toxic Area Recovery Program (TARP)
none of the above

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