When the Fed Conducts Open-Market Purchases

question 17

Multiple Choice

When the Fed conducts open-market purchases,

• A)it buys Treasury securities,which increases the money supply.
• B)it buys Treasury securities,which decreases the money supply.
• C)it borrows money from member banks,which increases the money supply.
• D)it lends money to member banks,which decreases the money supply.

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Definitions:

Active Statements

Phrases that use action verbs to clearly and directly convey who is performing the action, contributing to more engaging and dynamic communication.

Results

The outcomes or conclusions that arise from an action, experiment, or process, indicating its success, failure, or findings.

Action Verbs

Verbs that express a physical or mental action, often used to make sentences more dynamic and persuasive in communication.

Quantified Results

Measurable outcomes derived from an experiment, study, or action, often presented in numerical form.