When the Fed Buys Securities from a Bank, What Happens

question 501

Essay

When the Fed buys securities from a bank, what happens to the monetary base and the quantity of money? Which changes by more or do both change by the same amount?

Describe the concept of blindsight and its implications for understanding consciousness.

Understand inattentional blindness and its effects on perception.

Examine the psychological and neuroscientific perspective on mind-brain relationship.

Appreciate the complexity of perceptual processes, such as change blindness and the cocktail party effect.

---

Definitions:

Absorption Costing

An accounting practice that includes the total manufacturing costs, which are direct materials, direct labor, and manufacturing overhead (both variable and fixed), in the valuation of a product.

Net Operating Income

A financial metric representing a company's income after operating expenses but before interest and taxes.

Absorption Costing

A bookkeeping approach that incorporates all production expenses—direct materials, direct labor, and both variable and fixed overhead—into the product's cost.

Net Operating Income

The profit generated from normal business operations, excluding extraordinary items and expenses like taxes.