When the Fed Buys $100 Million of Securities from a Commercial

question 102

Multiple Choice

When the Fed buys $100 million of securities from a commercial bank,the

• A)monetary base increases.
• B)money supply decreases.
• C)bank's reserves decrease.
• D)required reserve ratio decreases.
• E)bank is risking its depositors' money.

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Definitions:

Atrial Depolarization

The excitement and contraction caused by the SA node at the beginning of the cardiac cycle.

Cardiology

The branch of medicine dealing with disorders of the heart as well as parts of the circulatory system.

Cardiac Cycle

The sequence of events that occur in the heart during one complete heartbeat, including contraction (systole) and relaxation (diastole) phases.

Atrial Depolarization

The electrical activation of the atria of the heart, typically represented by the P wave in an electrocardiogram (ECG).