Suppose the Fed Sells a $50,000 U

question 47

Multiple Choice

Suppose the Fed sells a $50,000 U.S.Treasury security to Martha,a member of the public.If Martha writes a check to the Fed in order to buy this security,the money in her checking account will be transferred to

• A) the Fed,and now the Fed will have $50,000 more in reserves than it had before.
• B) her bank,and now her bank will have $50,000 more in reserves than it had before.
• C) the Fed,and now it is as if the money doesn't exist.
• D) the Treasury,and now the Treasury will have $50,000 more in reserves than it had before.

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Definitions:

Rudimentary Form

The most basic or primitive stage of development.

Embryonic Stage

A period in prenatal development from approximately 2 to 8 weeks after fertilization, during which major body structures and organs begin to develop.

Fetus

A developing human from roughly eight weeks after conception until the time of birth.

Motor Reflexes

Involuntary movements or actions that occur in response to specific stimuli, demonstrating the body's automatic response mechanisms.