9. In carrying out open market operations, the Federal Reserve buys and sells U.S. Treasury securities. Suppose the U.S. government paid off all its debt. Could the Federal Reserve continue to carry out open market operations?
10. In which of the following cases will the size of the central bank’s balance sheet change? a. The Federal Reserve conducts an open market purchase of $100 million US treasury securities b. A commercial bank borrows $100 million from the Federal Reserve c. The amount of cash in the vaults of commercial banks falls by $100 due to withdrawals by the public.