When the Fed Buys a Treasury Bill from the Public

question 5

Multiple Choice

When the Fed buys a Treasury bill from the public, how does it usually pay for the T-bill?

• A)by writing a check on a commercial bank account 
• B)by printing new Federal Reserve notes 
• C)by creating new reserves in bank accounts 
• D)by prepaying taxes into the Treasury's account

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Definitions:

Potential

The inherent capability or capacity for growth, development, or coming into being.

Self-Actualise

The process by which individuals realize their fullest potential, achieving personal growth and self-fulfillment.

Maslow's Hierarchy

A theory of human motivation that posits a hierarchy of psychological needs, from basic physiological needs to higher levels such as self-actualization.

Physiological Needs

Basic essential requirements for human survival, such as food, water, and shelter.