The Federal Reserve Makes an Open Market Purchase and the Change

question 82

Multiple Choice

The Federal Reserve makes an open market purchase and the change in reserves is the same as the change in the MB. Therefore, the Fed

• A) made the purchase from the banks.
• B) made the purchase from the public.
• C) made the purchase from the government.
• D) It is impossible for reserves to change as much as the MB.

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Definitions:

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Word Choices

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"It Is" Starters

A writing technique often used to introduce or emphasize a statement or concept.