A Currency Drain Occurs When the

question 99

Multiple Choice

A currency drain occurs when the

• A)Fed increases the required reserve ratio.
• B)Fed buys U.S. government securities.
• C)banks reduce the number of loans they create with their excess reserves.
• D)non-bank public increases its holdings of currency outside the banking system.
• E)Fed sells U.S. government securities.

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Definitions:

Aromatic Rings

Cyclic (ring-shaped) compounds containing delocalized pi electrons over the structure, leading to high stability.

Electrophilic Aromatic Substitution

A type of chemical reaction where an electrophile selectively replaces a hydrogen atom in an aromatic ring, leading to the formation of a substituted aromatic compound.

Major Organic Product

The primary organic compound formed in the highest quantity in a chemical reaction involving organic reactants.

Chlorination

The addition or substitution of chlorine in a molecule, commonly used in disinfection and organic synthesis processes.