Which of the Following Will Occur If the Fed Buys

question 579

Multiple Choice

Which of the following will occur if the Fed buys $10 million of securities from the University National Bank?

• A) The University National Bank has $10 million less in excess reserves.
• B) The University National Bank has $10 million more in securities.
• C) The Fed will pay by decreasing the University National Bankʹs deposit account with the Fed by $10 million.
• D) The Fed will pay by increasing the University National Bankʹs deposit account with the Fed by $10 million.

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Definitions:

Top-Down Processing

A cognitive process where perception begins with the brain applying what it knows and expects to perceive and then works downward to the specifics of the input received.

Neocortical Processing

Relates to the functions of the neocortex, a part of the brain involved in higher-order brain functions such as sensory perception, cognition, and motor control.

Temporal Processing

The brain's ability to perceive and organize stimuli or events in time, including the capacity to sequence, compare, and predict temporal relationships.

Cranial Nerves

Twelve pairs of nerves that emerge directly from the brain, not the spinal cord, and supply the head and neck with motor and sensory innervation.