If the Fed Purchases Government Securities from a Commercial Bank,which

question 8

Multiple Choice

If the Fed purchases government securities from a commercial bank,which of the following will happen?

• A) The Fed will increase the bank's reserves on deposit at the Fed.
• B) The Fed will decrease the bank's reserves on deposit at the Fed.
• C) The assets (government securities)of the Fed will decrease.
• D) The assets (government securities)of the Fed will increase.
• E) a and d

---

Definitions:

Influential Points

Data points that have a disproportionately large effect on the results of a statistical analysis, potentially skewing the analysis.

Scatterplot

A graphical representation where individual data points are plotted on a two-dimensional plane, showcasing the relationship between two variables.

Precipitation

Any form of water - liquid or solid - falling from the sky, including rain, snow, sleet, and hail.

Linear Relationship

A type of association where a change in one variable is directly proportional to a change in another variable.