When the Fed Purchases Government Securities from a Commercial Bank

question 26

Multiple Choice

When the Fed purchases government securities from a commercial bank, the bank

• A)loses its ability to make loans.
• B)automatically becomes poorer.
• C)loses equity in the Fed.
• D)receives reserves that can be loaned out.

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Definitions:

Ego

In psychoanalytic theory, the part of the psyche that mediates between the desires of the id, the realities of the external world, and the moral standards of the superego.

Libido

A term that describes one's overall sexual drive or desire for sexual activity.

Transference

According to psychodynamic theorists, the redirection toward the psychotherapist of feelings associated with important figures in a patient’s life, now or in the past.

Psychodynamic

A psychological theory focused on the structured examination of the mental forces driving human behavior, feelings, and emotions, with an interest in their connection to experiences from early life.