The Fed's Sale of U

question 100

Multiple Choice

The Fed's sale of U.S. government securities in its open market operations constitutes

• A) a restrictive policy because it lowers the amount of total reserves in the banking system.
• B) a restrictive policy because it raise the amount of required reserves in the banking system.
• C) an expansionary policy because it raises the amount of total and excess reserves in the banking system.
• D) an expansionary policy because it raises the amount of excess reserves and lowers the amount of required reserves in the banking system.
• E) an expansionary policy because it raises the amount of required reserves in the banking system.

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Definitions:

White Americans

Individuals residing in the United States who identify as being of European, Middle Eastern, or North African descent.

Black Americans

A term referring to the African American population or individuals of Black African descent living in the United States.

Causal Attributions

The method through which people deduce the reasons behind their own and others' actions.

Distinctiveness

The quality or state of being noticeably different or unique compared to others.