If a Bank's Deposits at the Fed Increase by $10

question 329

Multiple Choice

If a bank's deposits at the Fed increase by $10 million, then

• A) both the bank's assets and the Fed's assets increase by $10 million.
• B) both the bank's liabilities and the Fed's liabilities increase by $10 million.
• C) the bank's assets increase by $10 million and the Fed's liabilities increase by $10 million.
• D) the bank's assets increase by $10 million, but there is no change at the Fed since it does not really have assets or liabilities.

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Definitions:

Individualism Versus Collectivism

A cultural dimension that reflects the degree to which people in a society are integrated into groups or expected to be independent and self-reliant.

Individual Freedoms

Rights and liberties that allow individuals to express themselves, make choices, and pursue their interests without undue interference.

Group Interests

Collective goals or objectives pursued by a group of individuals who share a common interest or purpose.

Monochronic Cultures

People tend to do one thing at a time.