If the Fed Buys $25 Billion of U

question 41

Multiple Choice

If the Fed buys $25 billion of U.S.bonds in the open market and the reserve requirement is 20 percent,M1 will eventually

• A)Increase by $25 billion.
• B)Decrease by $25 billion.
• C)Increase by $125 billion.

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Definitions:

Rhizoids

Rhizoids are small, root-like structures found in non-vascular plants, fungi, and some protists that anchor them to surfaces and absorb nutrients.

Gametophyte

The sexual phase in the life cycle of plants and algae that produces gametes through mitosis.

Prothalli

The gametophyte stage of ferns and some other non-seed plants, which is free-living and bears the sex organs.

Gemmae

Tiny balls of tissue (borne in gemmae cups) used for asexual reproduction by liverworts.