If the Fed Buys U.S.Treasury Securities,then This

question 253

Multiple Choice

If the Fed buys U.S.Treasury securities,then this

• A)increases reserves,encourages banks to make more loans,and increases the money supply.
• B)decreases reserves,causes banks to reduce their loans,and decreases the money supply.
• C)decreases reserves,causes banks to reduce their loans,and increases the money supply.
• D)increases reserves,causes banks to reduce their loans,and increases the money supply.

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Definitions:

Excise Tax

A tax levied on specific goods, services, and activities, such as tobacco, alcohol, and gambling, often used to discourage their use and generate government revenue.

Largest Source

Refers to the main or biggest origin of something, such as the largest source of revenue for a business or the largest source of pollution in an area.

Sales Tax

A tax levied on the cost (at retail) of a broad group of products.

Basic Source

Refers to the primary or fundamental origins of information or data used in research and analysis.