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:

Pith

The soft or spongy tissue in the center of stems in vascular plants, involved in storage and transport of nutrients.

Cortex

The outer layer of an organ or structure, such as the cerebral cortex of the brain or the cortex of the kidney, involved in various functions depending on the organ.

Intercellular Spaces

Gaps or areas between the cells of organisms, which in plants are often filled with air or fluid for the exchange of gases.

Cortex

The outer layer of various organs or body structures, such as the brain, kidneys, and hair.