If the Fed Sells Securities Worth $10 Million to a Commercial

question 24

Multiple Choice

If the Fed sells securities worth $10 million to a commercial bank, the Fed's balance sheet will show

• A)an increase in securities held of $10 million and an increase in bank reserves of $10 million.
• B)an increase in securities held of $10 million and a decrease in bank reserves of $10 million.
• C)a decrease in securities held of $10 million and an increase in bank reserves of $10 million.
• D)a decrease in securities held of $10 million and a decrease in bank reserves of $10 million.

---

Definitions:

Cephalopod Mollusks

Cephalopod mollusks are a class of shell-less or external shell-bearing aquatic invertebrates, such as octopuses, squids, and cuttlefish, known for their intelligence and complex behaviors.

Bipolar Cell

A type of neuron in the retina of the eye; receives input from the photoreceptors (rods and cones) and synapses on ganglion cells.

Ciliary Muscle

A ring-shaped muscle in the eye's middle layer (uvea) that controls the lens's shape for focusing and accommodation.

Lateral Line Organs

Specialized sensory organs in fish and amphibians, consisting of a system of fluid-filled canals and sensory hair cells to detect movement and vibration in the surrounding water.