Consider All Three Species of the Genus Happy: the Eastern

question 55

Multiple Choice

Consider all three species of the genus Happy: the Eastern Mugwump, the Western Mugwump, and the Middle Mugwump. All of these species evolved from a six-legged common ancestor. The Eastern and Middle Mugwumps have six legs, and the Western Mugwumps have eight legs. For the genus Happy, six-leggedness is

• A) ancestral.
• B) derived.
• C) convergent.
• D) a mutation.

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Definitions:

Open Market Operations

The buying and selling of government securities by a central bank in order to control the money supply and influence interest rates.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, central bank, or other governing body.

Actual Reserves

The amount of funds that a bank has on hand and available to lend, beyond its reserve requirements.

Required Reserves

The minimum amount of funds a bank must hold in reserve against deposit liabilities, as mandated by regulatory authorities.