Suppose That the Sun Shrank in Size but That Its

question 2

Multiple Choice

Suppose that the Sun shrank in size but that its mass remained the same. What would happen to the orbit of the Earth?

• A) Earth's orbit would be unaffected.
• B) The size of Earth's orbit would shrink, and it would take less than one year to orbit the Sun.
• C) Earth's orbit would expand, and it would take more than one year to orbit the Sun.
• D) Earth would change from a bound orbit to an unbound orbit and fly off into interstellar space.

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Definitions:

Individual Bank

A financial institution that deals with consumers and businesses to offer deposit, loan, and investment services on an individual basis.

Discount Rate

The cost in interest that commercial banks and similar storage institutions incur on borrowing from their regional Federal Reserve Bank’s loaning service.

Federal Reserve District Banks

The 12 banks that make up the Federal Reserve System, serving as the central banking system of the United States, each serving a specific geographic district.

Reserve-Requirement Ratio

The fraction of deposits that banks are required by law to keep on hand as reserves or at the central bank.