Scenario: the Following Table Shows the Initial Balance Sheets of Bank

question 43

Multiple Choice

Scenario: The following table shows the initial balance sheets of Bank A and the Fed. Suppose that the Fed then buys $10 million in bonds from Bank A.

-Refer to the scenario above.After this transaction,the Fed's reserves ________ and Treasury bonds ________.

• A) increase by $10 million; increase by $10 million
• B) increase by $10 million; decrease by $10 million
• C) decrease by $10 million; decrease by $10 million
• D) decrease by $10 million; increase by $10 million

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Definitions:

Albumin

A protein found in blood plasma that helps maintain osmotic pressure and transport substances throughout the body.

Noncaffeinated Fluid

Beverages or liquids that do not contain caffeine, often recommended for hydration without the stimulating effects of caffeine.

High-Fiber Diet

A diet rich in fibers found in fruits, vegetables, whole grains, and legumes, beneficial for digestion and reducing the risk of chronic diseases.

Triceps Skinfold Thickness

A measurement used in assessing body fat by pinching and measuring the thickness of a fold of skin and subcutaneous fat on the back of the upper arm.