If the Federal Reserve Sells $1,500 in Bonds and the Resulting

question 24

Multiple Choice

If the Federal Reserve sells $1,500 in bonds and the resulting money supply change is $7,500,what is the required reserve ratio?

• A) 5.0
• B) 0.2
• C) 0.1
• D) 0.4
• E) 0.8

---

Definitions:

Revenue Recognition

The accounting principle that dictates the specific conditions under which revenue is recognized or accounted for.

Joint Ventures

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project.

Copyright

Legal protection provided to the creators of original works of authorship, including literary, dramatic, musical, and certain other intellectual works.

Stockholders' Equity

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