The Effect of an Open Market Purchase on Reserves Differs

question 209

Multiple Choice

The effect of an open market purchase on reserves differs depending on how the seller of the bonds keeps the proceeds.If the proceeds are kept in currency,the open market purchase ________ reserves; if the proceeds are kept as deposits,the open market purchase ________ reserves.

• A) has no effect on; has no effect on
• B) has no effect on; increases
• C) increases; has no effect on
• D) decreases; increases

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Definitions:

Tract

A large area of land.

Minerals Below

Refers to subsurface rights pertaining to minerals like oil, gas, coal, and others that lie beneath the surface of a piece of land.

Public Nuisance

An act or condition that is harmful or annoying to the public in general, significantly interfering with the enjoyment of public rights.

Landowners

Individuals or entities that have legal title to a piece of land, owning either the surface rights, subsurface rights, or both.