If the Fed Purchases Government Securities in the Open Market,_____

question 6

Multiple Choice

If the Fed purchases government securities in the open market,_____.

• A)the money supply will decrease
• B)the money supply will increase only if the seller of those securities is a commercial bank
• C)the money demand will increase immediately
• D)the money demand will decrease immediately
• E)the money supply will increase through the commercial banking system regardless of who the seller is

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Definitions:

Fibula

A slender bone positioned on the outer aspect of the tibia in the lower leg, crucial for ankle stability and aiding the muscles of the lower leg.

Metatarsals

The long bones in the foot that extend from the arch to the toes, participating in support and locomotion.

Tibia

The larger, stronger, and anterior of the two bones in the leg below the knee in vertebrates; it supports most of the body's weight.

Talus

A bone in the ankle that sits between the tibia and fibula bones of the lower leg and the calcaneus (heel bone), playing a crucial role in foot movement.