When the Fed ________ Securities in an Open Market Operation,banks

question 138

Multiple Choice

When the Fed ________ securities in an open market operation,banks' reserves ________,and therefore lending ________.

• A)sells;increase;increases
• B)buys;increase;increases
• C)sells;decrease;increases
• D)buys;decrease;decreases
• E)buys;do not change;does not change

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Definitions:

Chemical Energy

A form of potential energy stored in chemical bonds between atoms and molecules.

Just Noticeable Difference (JND)

The smallest difference in stimulation that a person can detect 50% of the time; a measure of sensory sensitivity.

Just Noticeable Difference

The smallest difference in stimulus intensity that a specific sense can detect.

Proportional Difference

The comparison between two quantities or measurements in terms of their ratio or relative size.