When the Fed Makes Open-Market Purchases Bank

question 99

Multiple Choice

When the Fed makes open-market purchases bank

• A)withdrawals and lending increase.
• B)withdrawals increase and lending decreases.
• C)deposits and lending increase.
• D)deposits increase and lending decreases.

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Definitions:

Hypothalamus

A region of the brain that plays a crucial role in many important functions, including releasing hormones and regulating body temperature.

Depressants

A class of drugs that reduce neural activity and slow down the functions of the body, often used to induce calmness or sleep.

Agonist

A chemical or drug that binds to receptors in the brain and causes an action or response, often mimicking the effects of naturally occurring substances.

Neurotransmitter

Chemical substances that transmit signals across a synapse from one neuron to another.