If the Fed Purchases Federal Government Bonds on the Open

question 17

Multiple Choice

If the Fed purchases federal government bonds on the open market, bank reserves will ____, leading to a(n) _______ in the money supply.

• A)decrease; decrease
• B)increase; decrease
• C)increase; increase
• D)decrease; increase

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Definitions:

Social Media

Digital platforms and websites that enable users to create, share content or participate in social networking.

Digital Natives

Individuals born or brought up during the age of digital technology, therefore are familiar with computers and the internet from an early age.

Generation Z

The demographic cohort following Generation Y (Millennials), typically defined as those born from the mid-1990s to the early 2010s, known for being digital natives.

Two-Way Digital Conversations

Interactions between brands and consumers or between individuals that occur through digital platforms, allowing for mutual communication and feedback.