When the Fed Conducts Open-Market Purchases

question 17

Multiple Choice

When the Fed conducts open-market purchases,

• A)it buys Treasury securities,which increases the money supply.
• B)it buys Treasury securities,which decreases the money supply.
• C)it borrows money from member banks,which increases the money supply.
• D)it lends money to member banks,which decreases the money supply.

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Definitions:

Depend On

To require support, assistance, or resources from someone or something for proper functioning or well-being.

Labeling

The process of classifying and naming individuals or groups based on perceived characteristics, which can influence identity and behavior.

Deviant

Behaviors or actions that violate societal norms or standards, often resulting in societal judgment or sanction.

Scapegoats

Individuals or groups unfairly blamed for problems or wrongdoings they did not cause, often to deflect responsibility from the true culprits.