Which of the Following Is Correct

question 5

Multiple Choice

Which of the following is correct?

• A)Federal Reserve purchases of securities will increase the reserves available to commercial banks.
• B)Federal Reserve purchases of securities exert upward pressure on interest rates in the short run.
• C)The Federal Reserve System determines the ratio of currency held by the public to the money supply (M1).
• D)Federal Reserve purchases of securities will decrease the reserves available to commercial banks.

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Definitions:

Leaching

Process by which water moving through soil removes nutrients from it.

Nutrients

Substances that provide nourishment essential for the growth and maintenance of life, including proteins, carbohydrates, fats, vitamins, and minerals.

Erosion

The process by which natural forces remove soil, rock, or dissolved material from one location and transport it to another.

Phytoremediation

The use of plants to remove, detoxify, or immobilize environmental contaminants in soil or water through natural processes.