The Fed Sells $400 in Bonds, Half to the Public

question 135

Multiple Choice

The Fed sells $400 in bonds, half to the public and half to the banking system, which means the monetary base falls by _____ and the quantity of reserves falls by _____

• A) $200, $200.
• B) $200, $400.
• C) $400, $200.
• D) $400, $400.

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Definitions:

Therapeutic

Relating to the healing of disease or maintenance of health, often used in the context of treatments, interventions, or environments designed to promote well-being.

Professional

Relating to a job that requires specialized knowledge and often intensive academic education.

Educational

Related to the process of teaching and learning, aimed at developing knowledge, skills, values, and attitudes.

Individual

A single human being as distinct from a group, class, or family, often emphasizing personal agency and identity.