Assume the Reserve Requirement Is 10

question 158

Multiple Choice

Assume the reserve requirement is 10%. If the Federal Open Market Committee buys a $10,000 bond from Bank A, Bank A's reserves

• A) decrease by $10,000.
• B) increase by $9,000.
• C) increase by $1,000.
• D) increase by $10,000.

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Definitions:

Government

The system or group of people governing an organized community, often a state, including institutions and individuals that hold the authority to make laws and regulations.

Per Stirpes

A legal term describing a method of distributing an estate whereby each branch of the deceased's family receives an equal share of the estate.

Estate

The total of all the assets, properties, and liabilities that a person leaves behind upon death.

Fraud

(1) An intentional deception that causes harm to another. (2) A basis for contesting a will if the testator relied on false statements when he or she made the will.