An Increase in Treasury Deposits at the Fed Causes

question 5

Multiple Choice

An increase in Treasury deposits at the Fed causes

• A)the monetary base to increase.
• B)the monetary base to decrease.
• C)Fed assets to increase but has no effect on the monetary base.
• D)Fed assets to decrease but has no effect on the monetary base.

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Definitions:

Slope

In mathematics, specifically in algebra and geometry, it refers to the measure of the steepness or incline of a line, represented as a ratio of the vertical change to the horizontal change between two points on the line.

Passing Through

A term often used to describe a line or curve that goes through a specific point in a graph or geometric figure.

Points

In geometry, a point refers to a precise location in space, often described with coordinates in a given dimension.

Sketch Graph

The act of drawing a rough representation of a graph to show its general shape and key points.