If the Fed Purchases Securities Worth $10 Million from a Commercial

question 83

Multiple Choice

If the Fed purchases securities worth $10 million from a commercial bank, the banking system's balance sheet will show

• A)an increase in securities held of $10 million and an increase in bank reserves of $10 million.
• B)an increase in securities held of $10 million and a decrease in bank reserves of $10 million.
• C)a decrease in securities held of $10 million and an increase in bank reserves of $10 million.
• D)a decrease in securities held of $10 million and a decrease in bank reserves of $10 million.

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Definitions:

Human Nature

the inherent characteristics, behaviors, and tendencies that are considered typical of all humans.

Token Economy

A behavior modification system based on the systematic reinforcement of target behavior through the distribution and exchange of tokens that can be exchanged for desired incentives.

External Variable

A factor outside the control of individuals that can affect their actions, outcomes, or a study's results, often considered in research to ensure validity.

Self-control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.