Consider a $2 Billion Open Market Purchase of U

question 101

Multiple Choice

Consider a $2 billion open market purchase of U.S. Treasury securities by the Federal Reserve. The Fed's balance sheet will show:

• A) only an increase in the asset of securities of $2 billion.
• B) only show an increase in the liability of reserves of $2 billion.
• C) no change in the size of the balance sheet, just the composition of assets will change from cash to securities.
• D) an increase in the asset category of securities and the liability category of reserves by $2 billion.

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Definitions:

Behaviour

The actions, reactions, or functioning of an organism, typically in response to its environment or stimuli.

Cultural Heritage

The legacy of physical artifacts and intangible attributes of a group or society passed from one generation to another, including customs, practices, places, objects, artistic expressions, and values.

Heredity

The transmission of physical or mental traits from parents to their offspring through genetics.

Behaviour

The actions or reactions of an individual, usually in relation to the environment, which can be observed and measured from an objective standpoint.