An Open Market Purchase of Securities by the Fed

question 232

Multiple Choice

An open market purchase of securities by the Fed

• A) increases banks' reserves and decreases banks' securities.
• B) decreases banks' reserves and increases banks' securities.
• C) decreases banks' total assets.
• D) involves a bank purchasing government securities from the Fed.

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Definitions:

Master Gene

Gene encoding a product that affects the expression of many other genes.

Lactose

A disaccharide sugar composed of glucose and galactose, commonly found in milk and dairy products.

Mammals

Warm-blooded vertebrates characterized by the presence of mammary glands, which females use to feed their young.

Milk

A nutrient-rich fluid produced by the mammary glands of female mammals, serving as the primary source of nutrition for their young.