When the Fed Buys a U

question 341

Multiple Choice

When the Fed buys a U.S. bond in the open market

• A) total reserves will increase.
• B) total reserves will decrease.
• C) total reserves do not change but the money supply increases.
• D) total reserves do not change but the money supply decreases.

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Definitions:

Communication

The process of exchanging information, ideas, thoughts, and feelings between people through speaking, writing, or body language.

Conversation

The informal exchange of ideas, information, and thoughts between two or more people through spoken words.

Selective Listening

The process of listening to certain parts of a conversation or message while ignoring others, often aligning with the listener's preferences or beliefs.

Concentration

The action or power of focusing one's attention or mental effort.