If the Fed Buys $2 Billion of Short-Term Securities Issued

question 73

Multiple Choice

If the Fed buys $2 billion of short-term securities issued by the government of Japan and pays for them by writing a check for $2 billion

• A) its assets will rise by $2 billion and the monetary base will rise by $2 billion.
• B) its assets will fall by $2 billion and the monetary base will fall by $2 billion.
• C) its assets will rise by $2 billion and the monetary base will fall by $2 billion.
• D) its assets will fall by $2 billion and the monetary base will rise by $2 billion.

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Definitions:

Gossaert's Neptune

A Renaissance painting by Jan Gossaert featuring the Roman god of the sea, Neptune, showcasing the artist's skill in human anatomy and use of color.

Amphitrite

In Greek mythology, the goddess of the sea and wife of Poseidon, often represented as the personification of the ocean and its calm and nurturing aspects.

Protestant Reforms

A religious movement in the 16th century that led to the creation of Protestantism, seeking to reform practices and beliefs of the Roman Catholic Church.

Saint Peter

A key figure in Christianity, traditionally considered one of Jesus Christ's Apostles and the first Bishop of Rome.