Assume the Fed Purchases a Government Security from a Private

question 148

Multiple Choice

Assume the Fed purchases a government security from a private dealer and pays with a Fed check of $100,000. If this check is deposited by the dealer in a bank with a 10 percent required reserve ratio, the bank can extend new loans in the amount of:

• A) $20,000.
• B) $90,000.
• C) $100,000.
• D) $120,000.

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Definitions:

Coronary Artery Bypass

A surgical procedure to restore blood flow to the heart muscle by diverting blood around blocked arteries.

Chlorhexidine

An antiseptic and disinfectant used for skin disinfection before surgery and to sterilize surgical instruments.

Ventilated Patient

A patient who is receiving mechanical ventilation support to maintain adequate breathing.

ICU

Intensive Care Unit, a specialized department within a hospital dedicated to caring for patients with severe or life-threatening illnesses or injuries that require constant, comprehensive monitoring and possible life support equipment.