Using the Data in the Above Table, an Open Market

question 223

Multiple Choice

Using the data in the above table, an open market operation in which the Fed purchased $100,000 of government securities from a bank would

• A) lead to a rise in the federal funds rate.
• B) cause demand deposits to fall by $100,000.
• C) increase the banking system's reserves by $100,000.
• D) create a reserve deficiency for the banking system.

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Definitions:

Intentional "Nothing"

A deliberate design or programming choice to include an absence of action or a null response in certain scenarios, often to prevent errors or handle specific conditions.

Entire Table

Refers to selecting or affecting all records or data within a table in database operations or queries.

Self Join

A type of SQL join where a table is joined to itself to compare rows within the same table.

Parent Table

In a relational database, a table that is referenced by a foreign key in another table (the child table), establishing a relationship between the two.