If a Bank's Deposits at the Fed Increase by $10

question 329

Multiple Choice

If a bank's deposits at the Fed increase by $10 million, then

• A) both the bank's assets and the Fed's assets increase by $10 million.
• B) both the bank's liabilities and the Fed's liabilities increase by $10 million.
• C) the bank's assets increase by $10 million and the Fed's liabilities increase by $10 million.
• D) the bank's assets increase by $10 million, but there is no change at the Fed since it does not really have assets or liabilities.

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Definitions:

Na+

Sodium ions, an essential electrolyte in the body that helps regulate blood pressure, blood volume, and pH levels, as well as nerve and muscle function.

Gray Matter

Regions of the brain and spinal cord consisting primarily of neuronal cell bodies, dendrites, unmyelinated axons, and glial cells, involved in muscle control and sensory perception.

Nuclei

The central and most important parts of an atom, or a cell's structure that contains the genetic material.

Resting Membrane Potential

The electrical charge difference across the cell membrane when the cell is in a non-excited state.