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

---

Definitions:

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, where infants learn through interacting with their environment, developing motor coordination and knowledge of the world.

Concrete-Operational Stage

A stage in Piaget's theory of cognitive development where children, usually aged 7 to 12, develop logical thinking but are not yet capable of abstract thought.

Preoperational Stage

The second Piagetian developmental stage, which lasts from about 2 to 7 years of age, when children begin to represent the world with words, images, and drawings.

Formal-Operational Stage

A developmental stage proposed by Piaget, where individuals (around age 11 and older) gain the ability to think abstractly and logically.