When the Fed Conducts an Open Market Operation by Purchasing

question 157

Multiple Choice

When the Fed conducts an open market operation by purchasing securities from a bank,

• A) public holdings of securities increase.
• B) the bank's deposits increase but its reserves do not change.
• C) the bank's deposits increase but its reserves decrease.
• D) the bank's reserves increase.

---

Definitions:

Ethnic Group

A community or population of people who share common cultural traits, ancestry, language, history, and sometimes physical characteristics.

Newfies

A colloquial and sometimes derogatory term for people from the Canadian province of Newfoundland and Labrador.

Jewish Community

A group of people who identify with or practice Judaism, sharing religious, cultural, and often historical ties.

First Nations

Indigenous peoples in Canada who are neither Inuit nor Métis, often associated with specific historical communities or territories.