When the Fed Conducts Open-Market Sales

question 19

Multiple Choice

When the Fed conducts open-market sales,

• A)it sells Treasury securities, which increases the money supply.
• B)it auctions term loans, which increases the money supply.
• C)it auctions term loans, which decreases the money supply.
• D)it sells Treasury securities, which decreases the money supply.

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Definitions:

Esteem Needs

A higher-level psychological requirement for a person to have self-respect and the respect of peers; includes feelings of mastery, achievement, and recognition.

Adolescence

is a transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Belongingness

The human emotional need to be an accepted member of a group, whether it is family, friends, co-workers, or a larger entity.

Physiological Needs

These are basic physical requirements for human survival, such as food, water, and shelter, as ranked at the bottom of Maslow's hierarchy of needs.