If the Fed Purchases Securities in the Amount of $100,000

question 101

Multiple Choice

If the Fed purchases securities in the amount of $100,000 from First Union Bank, then the

• A)assets of First Union Bank decrease by $100,000.
• B)assets of the Fed decrease by $100,000.
• C)assets of First Union Bank change in composition but not in the amount.
• D)liabilities of the Fed change in composition but not in amount.
• E)liabilities of First Union decrease by $100,000.

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Definitions:

Branchlike Structures

Refers to dendrites, which are projections from the neuron that receive signals from other neurons and transmit them toward the cell body.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons' axons, facilitating neural communication.

Messages

Units of communication intended to convey information, feelings, or instructions from one entity to another.

Neuron's Axon

The long, slender projection of a nerve cell, or neuron, that typically conducts electrical impulses away from the neuron's cell body.