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

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Definitions:

Cerebral Function

The array of activities carried out by the brain, encompassing both cognitive functions such as thinking and emotional responses.

Wandering

Aimless or purposeless movement often exhibited by individuals with cognitive impairments like dementia.

Alzheimer Disease

A progressive neurological disorder that causes memory loss, cognitive decline, and eventually, loss of ability to carry out the simplest tasks.