If the Fed Purchases Government Securities in the Open Market,_____

question 6

Multiple Choice

If the Fed purchases government securities in the open market,_____.

• A)the money supply will decrease
• B)the money supply will increase only if the seller of those securities is a commercial bank
• C)the money demand will increase immediately
• D)the money demand will decrease immediately
• E)the money supply will increase through the commercial banking system regardless of who the seller is

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Definitions:

Social Forces

Factors that affect society’s basic structure and the behavior of its members, including values, culture, norms, and demographic characteristics.

Environmental Scanning

The process of collecting and analyzing information about elements in the external environment that could impact an organization's strategies.

Potential Trends

Emerging patterns or changes in societal, technological, economic, or market sectors that have the possibility to significantly impact the future.

Social Force

Factors within society that influence and shape individual behavior, norms, and societal structures.