If the Fed Sells Foreign Assets, the Monetary Base Will

question 66

Multiple Choice

If the Fed sells foreign assets, the monetary base will

• A)fall by the amount of the sale, only if the Fed buys domestic bank deposits with the proceeds.
• B)fall by the amount of the sale, only if the Fed buys domestic currency with the proceeds.
• C)fall by the amount of the sale, whether the Fed buys domestic bank deposits or domestic currency with the proceeds.
• D)rise by the amount of the sale.

---

Definitions:

Regular Sexual Partner

Refers to an individual with whom someone engages in sexual activities on a consistent and ongoing basis.

Percent

A unit of measure expressing a number as a fraction of 100, commonly used to describe proportions and rates.

Mates

Refers to individuals paired for reproductive purposes or colloquially used to refer to friends or companions.

Socioeconomic Class

A division of society based on social and economic status.