If the Fed Sells Securities Worth $10 Million to a Commercial

question 24

Multiple Choice

If the Fed sells securities worth $10 million to a commercial bank, the Fed'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:

Residual Volume

The amount of air left in the lungs after a forced exhalation, which cannot be voluntarily expelled.

Pulmonary Edema

A condition characterized by excess fluid in the lungs, making it difficult to breathe and leading to potential heart failure if not treated.

Pulmonary Embolism

A blockage in one of the pulmonary arteries in the lungs typically caused by blood clots that travel from the legs or other parts of the body.

Heart Function

The heart's role in pumping blood throughout the body, supplying oxygen and nutrients to tissues, and removing carbon dioxide and wastes.