When the Fed Sells One Million Dollars in Securities to a Commercial

question 145

Multiple Choice

When the Fed sells one million dollars in securities to a commercial bank,

• A) there is no change in the total assets of the Fed or the commercial bank.
• B) the commercial bankʹs total assets decrease by one million dollars.
• C) the Fedʹs total assets increase by one million dollars.
• D) None of the above answers is correct.

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Definitions:

Subclavian Artery

A major artery that supplies blood to the head, neck, shoulder, and arm regions.

Upper Limb

Refers to the part of the human body that includes the arm, forearm, wrist, hand, and fingers.

Brachial Artery

The major blood vessel of the (upper) arm that supplies blood to the arm and hand.

Venous Sinuses

Large channels in the brain that collect venous blood from the brain and lead it towards the internal jugular veins.