If the Fed Buys $2 Billion of Short-Term Securities Issued

question 73

Multiple Choice

If the Fed buys $2 billion of short-term securities issued by the government of Japan and pays for them by writing a check for $2 billion

• A) its assets will rise by $2 billion and the monetary base will rise by $2 billion.
• B) its assets will fall by $2 billion and the monetary base will fall by $2 billion.
• C) its assets will rise by $2 billion and the monetary base will fall by $2 billion.
• D) its assets will fall by $2 billion and the monetary base will rise by $2 billion.

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Definitions:

Insert Function Dialog Box

A feature in spreadsheet software that helps users search for, select, and insert functions into cells.

Function Arguments Dialog Box

A graphical interface in software applications that allows users to enter and configure the parameters required by a function to operate.

Page Layout View

A view mode in word processing and spreadsheet software that displays the document as it would appear in the printed output, including pages, margins, and headers/footers.

Scaling

The process of increasing or decreasing the size of an object or image in proportion.