When the Fed Conducts an Open Market Operation by Purchasing

question 157

Multiple Choice

When the Fed conducts an open market operation by purchasing securities from a bank,

• A) public holdings of securities increase.
• B) the bank's deposits increase but its reserves do not change.
• C) the bank's deposits increase but its reserves decrease.
• D) the bank's reserves increase.

---

Definitions:

Ruler

A tool in document and graphic design software that helps the user align text, graphics, or other elements by providing a visual guide for measurement and layout.

Paragraph Object

An element in programming dealing with text operations, representing a paragraph, allowing for manipulation and formatting within documents.

Paragraph

A separate part of a written work, typically focusing on a solitary subject, marked by the start of a new line, an indentation, or a number.

Object

In computing, an object is a data structure encompassing data and methods to manipulate that data, fundamental in object-oriented programming.