When the Fed Buys Securities

question 2

Multiple Choice

When the Fed buys securities

• A)reserves of depository institutions rise.
• B)reserves of depository institutions fall.
• C)reserves of depository institutions are not affected.
• D)the government deficit rises.

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Definitions:

Squint

A condition where the eyes do not properly align with each other when looking at an object, leading to uncoordinated eye movements.

Opponent Process Theory

A theory of color vision and visual processing that proposes color perception is controlled by the activity of two opponent systems: a blue-yellow mechanism and a red-green mechanism.

Afterimage

A visual phenomenon where an image continues to appear in one's vision after the exposure to the original image has ended.

Subtractive Colour Mixing

A process of mixing colors by removing wavelengths of light, resulting in a color that is a mixture of the two or more source colors, typical in pigment mixing.