Assume the Reserve Requirement Is 25% and the Federal Open

question 46

Multiple Choice

Assume the reserve requirement is 25% and the Federal Open Market Committee buys $4 million of U.S. government bonds from the public. As a result of this transaction, the supply of money is

• A) not directly affected but has the potential to be increased by a total of $12 million.
• B) directly increased by $4 million and has the potential to be increased by another $12 million.
• C) directly reduced by $4 million and has the potential to be reduced by another $12 million.
• D) directly increased by $4 million and has the potential to be increased by another $8 million.

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Definitions:

National Unity

The sense of solidarity and cohesion among the citizens of a nation, fostering a sense of shared identity and purpose.

African Religions

The diverse religious practices and beliefs found in the African continent.

Religious Alternatives

Various non-mainstream religious or spiritual practices and beliefs that differ from established or traditional religions.

Revivalist Minister

A clergy member who promotes or leads a religious revival, seeking to reinvigorate faith through impassioned preaching and public gatherings.