When the Fed Buys U

question 101

Multiple Choice

When the Fed buys U.S. government securities on the open market

• A) the reserves of the banking system expand.
• B) the reserves of the banking system contract.
• C) the money supply contracts.
• D) the total reserves of the banking system will fall below required reserves.

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Definitions:

Hyperventilation

A condition where breathing is rapid and deep, leading to excessive expulsion of circulating carbon dioxide.

Serum pH

A measure of the acidity or alkalinity of the serum, the clear liquid that can be separated from clotted blood, crucial for diagnosing and managing various health conditions.

Hemiparesis

Weakness on one side of the body, which can be a result of various neurological injuries or conditions.

Bronchitis

An inflammation of the bronchial tubes in the lungs, resulting in coughing and difficulty breathing, which can be acute or chronic.