If the Fed Purchases $100,000 in Government Bonds from a Bank

question 1

Multiple Choice

If the Fed purchases $100,000 in government bonds from a bank, then the

• A)liabilities of the bank rise by $100,000.
• B)reserves of the bank fall by $100,000.
• C)assets of the bank rise by $100,000.
• D)reserves of the bank rise by $100,000.

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Definitions:

Divestiture

The process of selling off subsidiary business interests or investments by a company to refocus its operations or to raise capital.

Core Competencies

Fundamental strengths or advantages of a business or organization that set it apart from competitors.

Turnaround

A process or strategy aimed at recovering a company from a period of poor performance and financial decline to achieve positive financial results and operational efficiency.

Performance Problems

Issues related to an individual's or group's inability to meet established standards or goals in work or project outcomes.