When the Fed Purchases Securities, the Total Funds of Commercial

question 41

Multiple Choice

When the Fed purchases securities, the total funds of commercial banks ____ by the market value of the securities purchased by the Fed. This activity initiated by the FOMC's policy directiveisreferred to as a(n) ____ of money supply growth.

• A) increase; loosening
• B) decrease; tightening
• C) decrease; loosening
• D) increase; tightening
• E) none of the above

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Definitions:

Taller And Heavier

A descriptive phrase indicating an increase in both height and weight, often used in the context of growth, development, or comparison between individuals or objects.

Myelinization

The process of forming a myelin sheath around the nerves in the body, which enhances the speed and efficiency of electrical signal transmission in the nervous system.

Cortex

the outer layer of the cerebrum in the brain, involved in numerous high-level functions including thought, memory, and consciousness.

Rooting Reflex

The Rooting Reflex is an automatic movement response observed in infants, who naturally turn their head toward a touch on their cheek and open their mouth to 'root' in the direction of the touching object, typically for breastfeeding.