If the Fed Buys a U

question 126

Multiple Choice

If the Fed buys a U.S.Treasury bill from a member of the public, the banking system has

• A)less reserves and the money supply tends to fall.
• B)more reserves and the money supply tends to fall.
• C)less reserves and the money supply tends to grow.
• D)more reserves and the money supply tends to grow.

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Definitions:

Maltase

An enzyme that breaks down maltose into glucose, playing a crucial role in the digestive process of carbohydrates.

Carbohydrates

Organic compounds, including sugars, starch, and cellulose, which serve as a major energy source in the diet of animals.

LDL Receptors

Proteins on cell surfaces that bind and internalize low-density lipoprotein (LDL) particles for degradation.

Serum Cholesterol

The total amount of cholesterol present in the serum portion of the blood, which is a key indicator in assessing an individual's risk for cardiovascular diseases.