When the Fed Sells Government Bonds It ____ Reserves and ______

question 44

Multiple Choice

When the Fed sells government bonds it ____ reserves and ______ the money supply.

• A) increases; increases
• B) decreases; increases
• C) decreases; decreases
• D) increases; decreases

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Definitions:

Finger Stick

A simple procedure used to obtain a small blood sample by pricking the finger.

Allergy

An immune system reaction to a foreign substance that is not typically harmful to the body.

Adhesive

A substance used for sticking objects or materials together; commonly referred to as glue.

Vacuum Tube

An electronic device used to control the flow of electricity in a vacuum, commonly used in early electronics such as radios and televisions.