Which Among the Following Will Happen If the Fed Buys

question 2

Multiple Choice

Which among the following will happen if the Fed buys bonds from a private bank?

• A) The Fed's total liabilities will increase.
• B) The Fed's total assets will decrease.
• C) The private bank's total assets will increase.
• D) The private bank's total assets will decrease.

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Definitions:

Good

Describes something as being satisfactory, beneficial, or morally right.

Groin Pull

A strain or injury to the muscles of the inner thigh, often occurring in activities requiring sudden changes in direction or speed.

Ankle Sprain

An injury to the ligaments in the ankle, usually caused by twisting or turning the ankle in an awkward way.

ACL Tear Injury

A common injury involving a tear in the anterior cruciate ligament, one of the key ligaments that help stabilize the knee joint.