Suppose That the Fed Undertakes an Open Market Sale,selling $3

question 5

Multiple Choice

Suppose that the Fed undertakes an open market sale,selling $3 million worth of securities to a bank.If the required reserve ratio is 11%,checkable deposits (or the money supply) ,would _______________ by ________________ million,assuming that there are no cash leakages and that banks hold zero excess reserves.

• A) rise; $27
• B) decline; $33
• C) decline; $27
• D) rise; $33

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Definitions:

Motion Path

An animation feature that allows an object to move along a predetermined path on a slide or canvas in presentation and animation software.

Entrance Animation

A feature in presentation software that adds visual effects to introduce a slide, object, or element on the screen in an animated form.

Underline Emphasis

The practice of highlighting text by drawing a line directly beneath it to signify importance or to convey emphasis.

Wipe Animation

An animation effect where one scene transitions to another by appearing to wipe the old scene off the screen, often used in presentations and video editing.