Suppose the Fed Sells $100 of Government Securities

question 66

Multiple Choice

Suppose the Fed sells $100 of government securities. If the desired reserve ratio is 20 percent and there is no currency drain, then the quantity of money

• A)decreases by $80.
• B)decreases by $400.
• C)decreases by $100.
• D)increases by $100.
• E)decreases by $500.

---

Definitions:

PERT/CPM

Project management tools used to schedule, organize, and coordinate tasks within a project, where PERT stands for Program Evaluation and Review Technique and CPM stands for Critical Path Method.

Code Of Ethics

A set of guidelines designed to help professionals conduct their business ethically, reflecting the organization's values and standards.

Project Management Institute

An international professional organization for project management professionals that establishes standards, provides certifications, conducts research, and offers educational opportunities.

Ethical Issues

Situations or problems requiring a choice between actions that must be evaluated as right (ethical) or wrong (unethical) based on a moral framework.