An Open Market ________ Leads to A(n)________ of Reserves and Deposits

question 107

Multiple Choice

An open market ________ leads to a(n) ________ of reserves and deposits in the banking system and hence to a(n) ________ of the monetary base and the money supply.

• A) sale; expansion; contraction
• B) purchase; expansion; contraction
• C) sale; expansion; expansion
• D) purchase; expansion; expansion

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Definitions:

Skilled Workers

Individuals who have acquired special skills, training, knowledge, and abilities in their work.

Unskilled Workers

Individuals in the workforce who possess limited or no specific skills in their job roles and typically perform simple tasks that require little training.

Wage Differential

The difference in wages earned by workers in different jobs, sectors, or locations, often influenced by factors like skill levels, demand, and living costs.

Auto Repairs

Services aimed at maintaining or fixing vehicles to ensure they are safe and operational.