Table 29-1 Effects of an Open-Market Transaction on the Balance Sheets of Sheets

question 13

Multiple Choice

Table 29-1
Effects of an open-market transaction on the balance sheets of banks and the fed (in millions of dollars) ​
-In Table 29-1, the Federal Reserve System has

• A)sold $10 million in government securities to banks, taking payment in cash.
• B)sold $10 million in government securities to banks, taking payment from the bank's reserves.
• C)purchased $10 million in government securities from banks, paying for them with increases in banks' reserves.
• D)purchased $10 million in government securities from banks, paying for them with new Federal Reserve notes.

---

Definitions:

Dependent Variable

In an experiment, it is the variable that is being tested and measured, expected to change as a result of manipulations to the independent variable.

Gustav Theodor Fechner

A German philosopher, physicist, and experimental psychologist, known as a founder of psychophysics, which quantifies the relationships between physical stimuli and the sensations and perceptions they affect.

Psychophysics

The branch of psychology that studies the relationships between physical stimuli and the sensations and perceptions they produce.

Psychological Sensation

The initial process of detecting and interpreting environmental stimuli through the senses.