When the Fed Buys U

question 44

Multiple Choice

When the Fed buys U.S.government securities from a member bank,the immediate effect on that member bank's balance sheet is

• A)a decrease in assets
• B)an increase in assets
• C)a decrease in liabilities
• D)an increase in liabilities
• E)that there is no change in the total amount of assets or liabilities

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Definitions:

Few Expectations

The situation of having minimal or low anticipations regarding outcomes or future events.

Positive Communication

The practice of conveying messages in a constructive, encouraging, and supportive manner to foster good relationships and effective interactions.

Negative Communication

Interactions that convey criticism, contempt, defensiveness, or stonewalling, often leading to relationship deterioration.

Generalize

To make broad statements or conclusions that extend beyond the original data or observations, applying them to larger groups or situations.