When the Fed Purchases Short-Term Government Securities from Banks, the Primary

question 211

Multiple Choice

When the Fed purchases short-term government securities from banks, the primary effect on excess reserves is that they:

• A)decrease.
• B)increase.
• C)remain constant.
• D)fluctuate randomly.

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Definitions:

Poisonous Tree

Refers to evidence obtained through illegal or unethical means, which is considered inadmissible in court due to its tainted origin.

Fourth Amendment Rule

Encompasses the right against unreasonable searches and seizures, ensuring that any warrant issued is based on probable cause, supported by Oath or affirmation, and specifically describes the place to be searched, and the persons or things to be seized.

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations, enhancing financial disclosures and corporate governance.

Felony

A serious crime, typically involving violence, regarded as more severe than a misdemeanor and usually punishable by imprisonment for more than one year or by death.