If the Fed Buys $300 in Securities and the Reserve

question 111

Multiple Choice

If the Fed buys $300 in securities and the reserve requirement is 5%, according to the simple formula for the money multiplier, the money supply

• A) falls by $315.
• B) falls by $600.
• C) rises by $315.
• D) rises by $600.

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Express Authority

Legal power granted explicitly to an agent or representative by a principal, allowing them to act on the principal's behalf.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, if such acts occur within the scope of the employment or agency.

Liability

The state of being responsible for something, especially by law.

Tort

A civil wrong causing harm to someone, for which the injured party can seek legal remedies or damages.