If the Fed Sells U

question 28

Multiple Choice

If the Fed sells U.S.government securities to banks, the federal funds rate ________ and banks' reserves ________.

• A) falls; increase
• B) rises; do not change
• C) rises; increase
• D) falls; decrease
• E) rises; decrease

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Definitions:

Psychical Regions

A concept in psychology referring to different areas or aspects of the mind and its functions.

Cultural Regions

Geographically distinct areas characterized by a unique set of cultural practices, beliefs, languages, and social norms.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and distribution of goods determined mainly by competition in a free market.

George Ritzer

An American sociologist known for his work on consumerism, globalization, and the concept of "McDonaldization," which describes the process by which principles of the fast-food industry dominate sectors of society.