-Refer to Exhibit 13-1

question 40

Multiple Choice

-Refer to Exhibit 13-1.Suppose that the Federal Reserve conducts open market operations by purchasing $1,000 worth of government securities from Bank A.At the end of this process of money creation,what is the total amount of new checkable deposits?

• A)$1,000,000
• B)$1,000
• C)$10,000
• D)$100,000

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest.

Recordable Transaction

A transaction that must be entered into the financial records of a company because it affects the financial position.

Cleaning Service

A business that provides cleaning and maintenance services for commercial or residential properties.

Note Payable

A written promise to pay a specific sum of money, either on demand or at a fixed or determinable future time.