When the Fed Sells Securities, the Total Funds of Commercial

question 49

Multiple Choice

When the Fed sells securities, the total funds of commercial banks ____ by the market value of securities sold by the Fed. This activity initiated by the FOMC's policy directive is referred to as a ____ of money supply growth.

• A)increase; loosening
• B)decrease; loosening
• C)increase; tightening
• D)decrease; tightening
• E)none of the above

Understand the implications of income redistribution on economic incentives.

Describe the impact of government programs on poverty and income distribution.

Analyze the relationship between economic policies and their impact on income inequality.

Understand the concepts and differences among various social insurance and public assistance programs.

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Definitions:

Lagging Indicators

Economic factors that change after the economy has already begun to follow a particular trend, used to confirm the trend.

Balanced Scorecard

A strategic planning and management system that organizations use to communicate what they are trying to accomplish, align day-to-day work with strategy, and measure and monitor progress toward strategic targets.

Research And Development

Activities undertaken by a company to innovate and introduce new products or improve existing products or processes.

Performance Perspectives

Different angles from which to evaluate and assess the performance of a company or organization, often used in strategic management and balanced scorecards.