When the Fed Purchases Securities from a Bank,it __________ Reserves

question 106

Multiple Choice

When the Fed purchases securities from a bank,it __________ reserves and ____________ the money supply.

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

---

Definitions:

Agents

Individuals or entities that act on behalf of others in economic transactions or negotiations.

Rent-Seeking Behavior

Activities aimed at gaining financial benefits through manipulation or exploitation of the political or economic environment rather than through trade and production of wealth.

Ballot Measure

A proposal put to a vote of the general public, allowing voters to make direct decisions on legislation or policy issues.

School Funding

The financial resources provided for public schools, typically derived from taxes and allocated by governmental entities to support education.