When the Fed Buys U

question 54

True/False

When the Fed buys U.S. Treasury bonds from a bank, it increases the supply of reserves by crediting the seller's account at the Fed.

---

Definitions:

Calcaneal Tendon

Common tendon of the gastrocnemius, soleus, and plantaris muscle that attaches to the calcaneus; also called Achilles tendon.

Sternocleidomastoid

A muscle in the neck that is responsible for rotation and flexion of the head.

Orbicularis Oculi

A facial muscle that encircles the eye socket, responsible for closing the eyelids.

Masseter

A facial muscle critical for chewing and biting, located at the angle of the jaw.