If the Fed Sells Foreign Assets, the Monetary Base Will

question 66

Multiple Choice

If the Fed sells foreign assets, the monetary base will

• A)fall by the amount of the sale, only if the Fed buys domestic bank deposits with the proceeds.
• B)fall by the amount of the sale, only if the Fed buys domestic currency with the proceeds.
• C)fall by the amount of the sale, whether the Fed buys domestic bank deposits or domestic currency with the proceeds.
• D)rise by the amount of the sale.

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Definitions:

Prepress Department

A sector within a printing company responsible for preparing materials for printing, including layout, proofing, and plate making.

Computer Workstations

Computers engineered for high efficiency, specifically tailored for scientific or technical tasks.

Employees

Individuals who work for a business or organization and may receive compensation in the form of wages, salary, or benefits.

Direct Method

A type of cost allocation that assigns service department costs directly to producing departments without intermediate allocations.