The Purchase of Existing U

question 133

Multiple Choice

The purchase of existing U.S.Treasury securities by the Federal Reserve will

• A) have no effect on the money supply.
• B) decrease the money supply.
• C) increase the money supply.
• D) decrease the reserves at banks.
• E) increase the amount of U.S.Treasury securities held at banks.

---

Definitions:

Door-in-the-Face Technique

A persuasion strategy where an initial, large request is made knowing it will be refused, followed by a smaller request, which is actually the desired outcome, making the second request seem more reasonable.

Political Office

denotes a position of authority or service in the government or related organization, held by an individual.

Balance Theory

A theory in social psychology suggesting that people strive for balance in their relationships and beliefs for cognitive consistency.

Pitchman

A person who promotes and sells a product or service, often using persuasive or catchy pitches, traditionally in a live setting but also often through media.