-Based on the Above Table, an Open Market Operation in Which

question 385

Multiple Choice

-Based on the above table, an open market operation in which the Fed purchased $200,000 of government securities would

• A) create a reserve deficiency for the banking system.
• B) lead to a maximum potential expansion of the money supply of $200,000.
• C) lead to a maximum potential expansion of the money supply of $2 million.
• D) cause demand deposits to fall by $200,000.

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Definitions:

Electronically Managed

Pertains to systems or components controlled or regulated by electronic devices and software, often optimizing performance and efficiency.

Shorepower

Term used to describe the means used to connect a truck/trailer combination to AC mains electrical power to supply hotel load electricity. A shorepower or hotel load grid exists on many U.S. and Canadian interstate routes. It is referred to 110, 230, and 460 V-AC mains feeds.

Hotel Loads

The electrical loads in a vehicle (often in trucking or mobile homes) not related to propulsion, such as lighting, climate control, and appliances.

AC Power

Alternating current electric power, characterized by a flow of charge that periodically reverses direction, used in households and industries for electrical devices and lighting.