If a $1 Million Open Market Purchase by the Fed

question 466

Multiple Choice

If a $1 million open market purchase by the Fed generates a new deposit at a bank that immediately causes the bank's reserves held at the Fed to increase by $1 million, then the T-account effects are that the bank's assets and liabilities ________ by $1 million and that the Fed's assets and liabilities ________ by $1 million.

• A) decline; decline
• B) increase; decline
• C) decline; increase
• D) increase; increase

Evaluate the role of MBA program rankings on student choice.

Understand the basic principles of competitive advantage and its significance in business strategy.

Recognize the difference between the IO (Industrial Organization) and RBV (Resource-Based View) perspectives in strategic management.

Identify the factors that influence firm competitiveness within an industry according to the IO perspective.

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Definitions:

Positive Relationship

A connection between two or more entities characterized by mutual respect, cooperation, and beneficial outcomes for all involved.

Coercive Power

The ability of a person or organization to force others to comply with demands or orders through threats or punishment.

Reward Power

Refers to the ability of a person to influence the behavior of others by offering them something desirable as an incentive.

Legitimate Power

A form of power derived from a position of authority in an organizational structure, which entitles someone to make demands and expect compliance.