If the Fed Sells Government Securities to a Member of the Nonbank

question 209

Multiple Choice

If the Fed sells government securities to a member of the nonbank public, then the resulting effect on the quantity of money is

• A)much larger than if the securities were sold to a bank.
• B)much smaller than if the securities were sold to a bank.
• C)the same as if the securities were sold to a bank.
• D)that there is no change in the quantity of money.
• E)None of the above answers are correct.

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Definitions:

Thirst

A sensation caused by the physiological need for water, prompting animals and humans to consume fluids.

Driving Ability

A set of skills and capabilities required to operate a vehicle safely, including motor coordination, cognitive comprehension, and adherence to traffic laws.

BAL

Blood Alcohol Level, a measurement of alcohol intoxication for legal and medical purposes.

Small Intestine

A part of the gastrointestinal tract between the stomach and large intestine that absorbs nutrients and minerals from food.