If the Fed Expects Currency Holdings to Rise,it Conducts Open

question 94

Multiple Choice

If the Fed expects currency holdings to rise,it conducts open market ________ to offset the expected ________ in reserves.

• A)purchases;increase
• B)purchases;decrease
• C)sales;increase
• D)sales;decrease

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Definitions:

Note Receivable

A written promise that someone will pay a business a specific sum of money on a specified date or on demand.

Days' Sales in Receivables

A financial ratio that measures the average number of days that receivables remain outstanding before being collected.

Allowance for Doubtful Accounts

Allowance for doubtful accounts is a financial accounting provision made for receivables that may not be collectible, estimating the portion of outstanding receivables likely to be uncollectable.

Credit Balance

A situation where the amount of credits in an account exceeds the debits, often seen as a positive balance in financial and bank accounts.