When the Fed Buys Government Securities on the Open Market

question 50

Multiple Choice

When the Fed buys government securities on the open market

• A) the national debt increases.
• B) bank deposits decrease.
• C) the Treasury Department realizes a profit.
• D) interest rates rise.
• E) bank reserves increase.

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Definitions:

Pursuing Goals

The active process of planning, striving towards, and achieving objectives or desired outcomes.

Anger

An emotional state that varies in intensity from mild irritation to intense fury and rage, often triggered by perceived wrongs or injustice.

Regulated Emotions

The process of controlling or managing one's emotional responses in alignment with societal norms or personal goals.

Rate of Return

The increase or decrease in value of an investment during a specific time frame, represented as a proportion of the investment's initial cost.