When the Fed Purchases Government Securities from a Commercial Bank

question 109

Multiple Choice

When the Fed purchases government securities from a commercial bank, the bank:

• A)​automatically becomes poorer.
• B)​loses equity in the Fed.
• C)​receives reserves that can be used to make additional loans.
• D)​loses its ability to make loans.

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Definitions:

Psychogenic Perspective

The psychogenic perspective focuses on the psychological origins of mental illness, emphasizing the influence of emotions, thoughts, and early experiences.

Psychological Factors

Refers to the mental, emotional, and cognitive aspects that influence an individual's behavior and well-being.

Abnormal Functioning

A term referring to patterns of behavior, thought, or emotions considered outside the societal norm, possibly indicating a psychological disorder.

Somatogenic Approach

A theoretical approach in psychology and psychiatry that emphasizes the physical causes of mental disorders, focusing on genetic, neurological, or biochemical contributors.