If the Fed Buys $1 Million in Government Securities from Bank

question 305

Multiple Choice

If the Fed buys $1 million in government securities from Bank A, then the immediate effect of this transaction is an increase in

• A) money supply M1.
• B) Bank A's excess reserves.
• C) Bank A's liabilities.
• D) Bank A's required reserves.

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Definitions:

Signal Transduction Receptors

Proteins located on cell surfaces or within cells that bind to specific molecules and trigger a response, often leading to a change in cell function.

ATP

Adenosine Triphosphate, a molecule that carries energy within cells, essential for cellular activities and metabolic processes.

Extracellular Matrix

A complex network of proteins and carbohydrates found outside of cells, providing structural and biochemical support to surrounding cells.

Hydrogen Pump

A mechanism or device that moves hydrogen ions (protons) across biological membranes or through other systems, often involved in energy production or pH regulation.