If the Fed Injects Reserves into the Banking System and They

question 78

Multiple Choice

If the Fed injects reserves into the banking system and they are held as excess reserves,then the monetary base ________ and the money supply ________.

• A)remains unchanged;remains unchanged
• B)remains unchanged;increases
• C)increases;increases
• D)increases;remains unchanged

---

Definitions:

Consumerism

An economic and social ideology that encourages the acquisition of goods and services in ever-increasing amounts, often equating personal happiness with consumer goods.

Totems

Objects, animals, or plants considered as sacred symbols and used as emblems by clans, families, or groups, often in indigenous cultures.

Buffet-Style Religiosity

An approach to faith characterized by picking and choosing religious beliefs and practices according to personal preferences.

Personal Spirituality

An individual's own set of beliefs, practices, and experiences related to a sense of connection to something greater than oneself.