What Is the Maximum Change in Total Deposits at Financial

question 5

Multiple Choice

What is the maximum change in total deposits at financial institutions if the Fed sells $120 billion of government securities to dealers,and the reserve requirement applicable to all deposits is 10%?

• A) $1.20 trillion decrease
• B) $133 billion increase
• C) $1.08 trillion increase
• D) $1.08 trillion decrease
• E) None of the above.

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Definitions:

Transcervical Sterilization

A form of permanent birth control where a device is implanted into the fallopian tubes via the cervix without incisions.

Emergency Contraception

Methods used to prevent pregnancy after unprotected sex or contraceptive failure, such as certain pills or devices.

Levonorgestrel

A synthetic hormone used in various forms of birth control, including pills and intrauterine devices, to prevent ovulation and pregnancy.