If the Fed Buys $100 in Securities from a Commercial

question 483

Multiple Choice

If the Fed buys $100 in securities from a commercial bank, the

• A) Fed's assets will decrease by $100.
• B) quantity of money will decrease by $100.
• C) quantity of the bank's reserves will increase by $100.
• D) amount of the bank's reserves will not change.

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Definitions:

Daughter Cells

The cells that result from the division of a single parent cell through processes such as mitosis or meiosis.

Organ Systems

Groups of organs working together to perform complex biological functions in an organism.

Posterior

Located at or near the back part of an organism, structure, or body.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.