When the Fed Wants to Expand the Money Supply Through

question 5

Multiple Choice

When the Fed wants to expand the money supply through open market operations, it:

• A)​sells government securities.
• B)​purchases government securities.
• C)​increase the Fed Funds rate.
• D)​decrease reserve requirements.

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Definitions:

Seasonal Affective Disorder (SAD)

Disorder identified by a 2-year period in which a person experiences major depression during winter months and then recovers fully during the summer; some people with this disorder also experience mild mania during summer months.

Major Depressive Episodes

Periods characterized by severe depression symptoms such as deep sadness, loss of interest in activities, and other physical and cognitive impairments, significantly impacting one's daily life.

Psychosocial Events

Events that involve both psychological and social aspects, significantly impacting an individual's mental health and social functioning.

Cognitive Disorder

A class of psychological disorders that mainly influence abilities related to learning, memory, perception, and solving problems.