If the Fed Purchases Government Securities from a Commercial Bank,which

question 8

Multiple Choice

If the Fed purchases government securities from a commercial bank,which of the following will happen?

• A) The Fed will increase the bank's reserves on deposit at the Fed.
• B) The Fed will decrease the bank's reserves on deposit at the Fed.
• C) The assets (government securities)of the Fed will decrease.
• D) The assets (government securities)of the Fed will increase.
• E) a and d

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Definitions:

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Relaxation refers to the process or state of reducing tension and stress, resulting in a sense of increased well-being.

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The tendency to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.

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