If the Fed Buys U

question 126

Multiple Choice

If the Fed buys U.S. government bonds from the public, it

• A) increases the volume of reserves in the banking system and the money supply tends to grow.
• B) decreases the volume of reserves in the banking system and the money supply tends to grow.
• C) increases the volume of reserves in the banking system and the money supply tends to fall.
• D) decreases the volume of reserves in the banking system and the money supply tends to fall.

---

Definitions:

Oxidative Deamination

A biochemical process in which an amine group is removed from an amino acid or other compound, usually resulting in the formation of an imine and the liberation of ammonia, often coupled with the reduction of NAD+ to NADH.

Glutamic Acid

An amino acid acting as a key neurotransmitter and a building block for proteins in organisms.

Transamination

A chemical process in which an amino group is transferred from one amino acid to a keto acid, altering amino acid structure.

Protein Synthesis

The biological process by which cells generate new proteins, involving transcription of DNA to mRNA and then translation of mRNA on ribosomes to assemble the protein.