When the Federal Reserve Sells Assets from Its Portfolio to the Public

question 41

Multiple Choice

When the Federal Reserve sells assets from its portfolio to the public with the intent of changing the money supply,

• A)those assets are government bonds and the Fed's reason for selling them is to increase the money supply.
• B)those assets are government bonds and the Fed's reason for selling them is to decrease the money supply.
• C)those assets are items that are included in M2 and the Fed's reason for selling them is to increase the money supply.
• D)those assets are items that are included in M2 and the Fed's reason for selling them is to decrease the money supply.

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Definitions:

Systolic Blood Pressure

The pressure in the arteries when the heart beats, representing the maximum arterial pressure during contraction of the left ventricle of the heart.

Stethoscope

A medical instrument used to listen to sounds within the body, particularly the heart and lungs, commonly used in physical examinations.

Electronic Digital

Pertains to devices or systems that use digital technology and electronics to function, often found in computing, communications, and diagnostics.

Brachial Artery

A major blood vessel of the upper arm that supplies blood to the arm and hand.