If the Fed Sells a T-Bill to an Individual Rather

question 99

Multiple Choice

If the Fed sells a T-bill to an individual rather than to a commercial bank, how will this affect the money supply?

• A)It will increase the money supply.
• B)It will increase the checking account balance of the individual.
• C)It will have no effect on the money supply.
• D)It will decrease the money supply.

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Definitions:

Statement of Partnership Authority

A document that delineates the extent of a partner's ability to make decisions and bind the partnership in contractual agreements.

Real Property

Land and anything permanently attached to it, such as buildings and structures.

Respondeat Superior

A legal doctrine holding an employer or principal legally responsible for the wrongful acts of an employee or agent, when such acts occur within the scope of employment or agency.

Commits a Tort

Engaging in an act that causes harm or injury to another person, leading to legal liability under civil law.