An Open-Market Purchase of Securities by the Fed Results in ________

question 65

Multiple Choice

An open-market purchase of securities by the Fed results in ________ in reserves and ________ in the supply of money.

• A) an increase; a decrease
• B) a decrease; a decrease
• C) an increase; an increase
• D) a decrease; an increase

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Definitions:

Ions

Atoms or molecules with a net electric charge due to the loss or gain of one or more electrons.

Neurotransmitters

Chemicals released by neurons that transmit signals across a chemical synapse, from one neuron to another target neuron, muscle cell, or gland cell.

Neurotransmitter Receptor Sites

Specific locations on nerve cells where neurotransmitters bind to initiate or inhibit electrical signals, facilitating communication between neurons.

Dendrites

Branch-like extensions of neurons that receive electrochemical messages from other neurons for transmission to the neuron cell body.