Which of the Following Happens If the Fed Buys Bonds

question 132

Multiple Choice

Which of the following happens if the Fed buys bonds from a private bank?

• A) The private bank's total assets remain unchanged.
• B) The private bank's composition of assets remain unchanged.
• C) The Fed's total assets decrease.
• D) The Fed's total liabilities remain unaffected.

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Definitions:

Ethics

Moral principles that govern a person's behavior or the conducting of an activity.

Socializing Agents

Entities or individuals that play a significant role in the process of teaching norms, customs, and ideologies within a society.

Developmental Perspective

An approach focusing on how individuals change and grow throughout their lives both physically and psychologically.

Interpretive Perspective

A research approach that seeks to understand the subjective meaning of social phenomena and the ways individuals interpret their world.