When the Fed Buys a Treasury Bill from the Public

question 5

Multiple Choice

When the Fed buys a Treasury bill from the public, how does it usually pay for the T-bill?

• A)by writing a check on a commercial bank account 
• B)by printing new Federal Reserve notes 
• C)by creating new reserves in bank accounts 
• D)by prepaying taxes into the Treasury's account

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Definitions:

Lean

Characterized by a high ratio of muscle to body fat, or in business, operating with efficiency and minimal waste.

Athletic

Relating to or involving sports, physical activities, or the physical skills and abilities required in sports.

Overweight

A condition where an individual has more body fat than is optimally healthy, typically measured by a body mass index (BMI) greater than 25.

Social Comparison Theory

The idea that individuals compare themselves with others in order to assess their abilities and opinions.