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:

Organizational Change

Involves modifications in the structures, strategies, policies, or culture of an organization to adapt to internal and external changes.

External Forces

Factors outside an organization that can impact its performance, such as economic conditions, competition, and regulatory changes.

Impact

The effect or influence of one thing on another; the outcome or result of a particular action or event.

System

A collection of interrelated parts working together for a purpose.