If the Fed Buys $100,000 in U

question 293

Multiple Choice

If the Fed buys $100,000 in U.S. government securities from a commercial bank, the bank now has an additional $100,000 of

• A) total assets.
• B) unplanned reserves.
• C) actual reserves.
• D) net worth.

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Definitions:

Tension-Cohesion Model

A theory explaining the movement of water through the xylem of plants, based on water molecule cohesion and tension created by evaporation.

Water Potential

A measure of the potential energy in water as well as the difference in potential energy between a given water sample and pure water, determining the direction water will flow.

Root Pressure

A pressure within the vascular system of the roots of plants that helps drive fluids upwards into the stem and leaves.

Water Potential

A measure of the potential energy in water, influencing its movement from areas of higher water potential to areas of lower water potential.