When the Desired Reserve Ratio Is 10 Percent,suppose the Fed

question 184

Multiple Choice

When the desired reserve ratio is 10 percent,suppose the Fed buys $1,000,000 of government securities from banks.As a result,the banks' excess reserves

• A)increase by $900,000.
• B)increase by $1,000,000.
• C)increase by $10,000.
• D)decrease by $10,000.
• E)decrease by $1,000,000.

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Definitions:

Pigmented Hairs

Pigmented hairs are hairs that contain melanin, which gives hair its color, varying from person to person and changing with age.

Terminal Hairs

The thick, pigmented hairs that replace vellus hairs in certain body parts during puberty.

Lanugo

Fine, soft hair that covers the body of a fetus, serving as insulation before the development of fat layers.

Dermal Papilla

Structures located at the base of the hair follicle, containing capillaries and nerves, crucial for hair growth and health.