When the Fed Sells a U

question 119

Multiple Choice

When the Fed sells a U.S. bond in the open market

• A) total reserves will increase.
• B) total reserves will decrease.
• C) total reserves do not change but the money supply increases.
• D) total reserves do not change but the money supply decreases.

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Definitions:

Land Titles Office

A government office that registers legal documents relating to the ownership and boundaries of property, ensuring legal ownership.

Fee Simple

A type of freehold ownership where the owner has the most extensive property rights allowed by law.

Crown

A reference to the state or monarch in the context of legal proceedings or governmental authority.

Mineral Rights

Legal entitlements that allow an individual or organization to explore, extract, and sell minerals from a piece of land.