When the Fed Buys a U.S. Government Security

question 231

Multiple Choice

When the Fed buys a U.S. government security:

• A)​the volume of loans issued by the banking system increases and investment will tend to increase.
• B)​the volume of loans issued by the banking system increases and investment will tend to decrease.
• C)​the volume of loans issued by the banking system decreases and investment will tend to increase.
• D)​the volume of loans issued by the banking system decreases and investment will tend to decrease.

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Definitions:

Sterile Solution

A liquid free of any living microorganisms, used in medical settings to prevent infection.

BUN

Blood Urea Nitrogen, a test that measures the amount of urea nitrogen in the blood to assess kidney function.

Renal Failure

A medical condition where the kidneys are unable to adequately filter waste products from the blood.

Intermittent Self-catheterization

A technique whereby individuals manually insert a catheter into the bladder to empty it; used by people who cannot naturally urinate.