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:

XIC Instruction

An "Examine if Closed" instruction in ladder logic programming, used to check if a contact is virtually closed in a control system.

Normally Open Relay

A type of electrical relay whose contacts are open in its resting state, closing to complete a circuit when activated.

Instruction A

Instruction A is not a specifically defined term in general contexts and may refer to the first or a particular instruction within a set in specific applications or systems.

Examine If Closed

A control system instruction or condition check to determine whether a circuit or valve is in its closed or off state.