If the Fed Buys $2 Billion of Short-Term Securities Issued

question 16

Multiple Choice

If the Fed buys $2 billion of short-term securities issued by the Bank of Japan and pays for them by writing a check for $2 billion,

• A)its assets will rise by $2 billion and its liabilities will fall by $2 billion.
• B)its assets will fall by $2 billion and its liabilities will rise by $2 billion.
• C)its assets and liabilities will both fall by $2 billion.
• D)its assets and liabilities will both rise by $2 billion.

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Definitions:

Forgets

The failure to retrieve a memory or information from the brain, which can occur for various reasons, including the decay of memory traces or inadequate encoding.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification and diagnostic tool used by mental health professionals.

Diagnostic Classification

Diagnostic classification refers to the systematic categorization of mental and physical health conditions based on standardized criteria and symptoms.

Mental Disorders

A wide range of conditions that affect mood, thinking, behavior, and functioning, often diagnosed according to standardized criteria.