When the Fed Sells a Government Security to the Public

question 46

Multiple Choice

When the Fed sells a government security to the public, how does it usually receive payment for the security?

• A)by accepting checks on bank accounts 
• B)by drawing money out of circulation 
• C)by decreasing member bank profits not distributed by the Fed 
• D)by decreasing reserves in bank accounts at the Fed

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Definitions:

Temporal Bone

A bone of the skull, situated at the sides and base of the cranium, involved in the protection of the inner ear.

Temporal Process

A projection on the zygomatic bone that helps form the zygomatic arch, connecting the zygomatic bone to the temporal bone of the skull.

Lumbar

Pertaining to the lower part of the back or the five vertebrae in the lower spine.