Which One of the Following Would Increase Reserves for the Banking

question 100

Multiple Choice

Which one of the following would increase reserves for the banking system?

• A)The Fed sells government securities on the open market.
• B)The Fed buys government securities on the open market.
• C)You purchase a newly-issued U.S. Treasury bond.
• D)You purchase a U.S. Treasury bond from a bond dealer.

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Definitions:

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Enrollment

The process of registering or entering into a system, often used in the context of education or services.

Cost to Provide Services

The total expense incurred by a business to deliver a service, including labor, materials, and overhead costs.

Expected Cost

The anticipated or forecasted cost of an action, project, or product, taking into account all relevant factors and potential risks, used for budgeting and financial planning.