If the Fed Sells Securities Worth $10 Million to a Commercial

question 24

Multiple Choice

If the Fed sells securities worth $10 million to a commercial bank, the Fed's balance sheet will show

• A)an increase in securities held of $10 million and an increase in bank reserves of $10 million.
• B)an increase in securities held of $10 million and a decrease in bank reserves of $10 million.
• C)a decrease in securities held of $10 million and an increase in bank reserves of $10 million.
• D)a decrease in securities held of $10 million and a decrease in bank reserves of $10 million.

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Definitions:

Cognitive Dissonance

The mental unease felt by a person who simultaneously holds multiple conflicting beliefs, ideas, or values.

Countertransference

A situation where a therapist, during the psychotherapy process, develops personal feelings toward the patient stemming from the therapist's own background.

Suppression

The conscious act of stopping oneself from thinking or feeling certain emotions.

Repression

A defense mechanism where unwanted or uncomfortable thoughts, feelings, or desires are unconsciously pushed out of conscious awareness.