When the Fed Wants to Expand the Money Supply Through

question 123

Multiple Choice

When the Fed wants to expand the money supply through open-market operation, it

• A)sells government securities to the Treasury.
• B)sells government securities to member banks.
• C)buys government securities from member banks.
• D)buys government securities from the Treasury.

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Definitions:

Synaptic Cleft

The synaptic cleft is the small gap at the junction between neurons, through which neurotransmitters carry signals from one neuron to another.

Axon Terminal

The end part of an axon that makes synaptic connections with another nerve cell or with an effector cell.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and conduct them toward the cell body.

Synapse

The point of contact between two neurons through which electrical or chemical signals are relayed from one neuron to the other.