If the Federal Reserve Conducts Open Market ________,The Money Supply

question 96

Multiple Choice

If the Federal Reserve conducts open market ________,the money supply ________,shifting the LM curve to the right,everything else held constant.

• A)purchases;decreases
• B)sales;decreases
• C)purchases;increases
• D)sales;increases

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Definitions:

Holder in Due Course

A legal term referring to a party that has acquired a negotiable instrument in good faith and for value, thereby having certain rights to enforce the instrument free of many defenses.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, and which can be transferred to another holder.

Natural Persons

Individuals in their capacity as humans in law, as opposed to legal entities like corporations.

Holder in Due Course

A term referring to a person who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be asserted against the original party.