When the Fed Buys U.S. Government Securities, the

question 203

Multiple Choice

When the Fed buys U.S. government securities, the

• A) size of the federal deficit falls.
• B) discount rate rises.
• C) money supply increases.
• D) banking system loses reserves.

---

Definitions:

Chloride Ion

A negatively charged ion (Cl-) that is an essential electrolyte found in all body fluids, important for maintaining fluid balance and electrical neutrality.

Dissociation

A mental process involving a lack of connection in a person's thoughts, memory, and sense of identity.

Sodium Ion

An essential electrolyte in the body that helps regulate water balance, nerve impulses, and muscle function.

Dissociation

A mental process involving a disconnection between thoughts, identity, consciousness, and memory.