If the Fed Wants to Decrease the Amount of Deposits

question 17

Multiple Choice

If the Fed wants to decrease the amount of deposits that banks hold,it can

• A)buy government bonds in an open market operation.
• B)sell government bonds in an open market operation.
• C)force banks by decree to do so.
• D)sell domestic deposits to foreign investors.
• E)None of these

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Definitions:

Radioactive Tracers

Substances containing a radioactive atom to track the movement of those substances through bodily systems or chemical reactions for diagnostic purposes.

Radioactive Contrast

A type of contrast dye containing radioactive materials used in medical imaging to improve the visibility of internal bodily structures and functions.

Subarachnoid Space

An area between the arachnoid mater and the pia mater.

Spinal Cord

is the main pathway for information connecting the brain and peripheral nervous system, running down from the brain through the backbone.