If the Fed Sells Securities on the Open Market,this Will

question 73

Multiple Choice

If the Fed sells securities on the open market,this will

• A)reduce banks' excess reserves.
• B)increase banks' excess reserves.
• C)leave banks' excess reserves unchanged.
• D)lower the reserve requirement.
• E)expand the money supply.

---

Definitions:

Myelin Sheath

The myelin sheath is a protective covering made of fatty substances that surrounds the axons of many neurons, facilitating the rapid transmission of neural impulses.

Synapses

The junctions between neurons through which they communicate with each other using chemical or electrical signals.

Sympathetic Nervous

Part of the autonomic nervous system that prepares the body for action and stress by accelerating the heart rate, widening the airways, and other responses.

Central Nervous

Pertains to the central nervous system, which consists of the brain and spinal cord, responsible for processing and transmitting information throughout the body.