Which One of the Following Would Increase Reserves for the Banking

question 100

Multiple Choice

Which one of the following would increase reserves for the banking system?

• A)The Fed sells government securities on the open market.
• B)The Fed buys government securities on the open market.
• C)You purchase a newly-issued U.S. Treasury bond.
• D)You purchase a U.S. Treasury bond from a bond dealer.

---

Definitions:

Morality

Principles or standards determining what behaviors are considered right or wrong by a society or individual.

Hormones

Chemical messengers produced by glands in the body that regulate physiological activities and maintain homeostasis.

Neurotransmitters

Substances that carry signals between neurons across synapses within the nervous system.

Synapses

The junctions through which neurons communicate with each other, using chemical or electrical signals.