The Currency Drain Reduces the Amount of

question 299

Multiple Choice

The currency drain reduces the amount of

• A)reserves available to banks to make loans.
• B)currency the Fed has outstanding in the economy.
• C)currency available for banks to borrow from the Fed.
• D)the monetary base.
• E)open market operations the Fed can make.

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Definitions:

Oil Pipeline

A system of pipes used to transport crude oil or petroleum products over long distances.

Contamination

The presence of unwanted substances or impurities in a material, environment, or biological system, often leading to harm or decreased quality.

Federal Government

The federal government is the national level of government, which has authority over all other levels of government in a federation, responsible for areas such as defense, foreign affairs, and commerce.

Three Mile Island

The location of a significant nuclear power plant accident in Pennsylvania, USA, in 1979.