Which of the Following Increase When the Fed Makes Open

question 11

Multiple Choice

Which of the following increase when the Fed makes open market purchases?

• A)currency and reserves
• B)currency but not reserves
• C)reserves but not currency
• D)neither currency nor reserves

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Definitions:

Annual Fuel Bill

The total cost incurred for fuel over a year, often referenced in the context of budgeting for vehicles, heating, or energy production.

Insulation Job

The process of adding insulating materials to buildings or other structures to reduce heat loss or gain, enhancing energy efficiency.

Annual Fuel Bill

The total cost incurred from fuel consumption over a one-year period, often relating to vehicles or households.

Interest Rate

The percentage charged on a loan or paid on savings over a specific period, effectively reflecting the cost of borrowing or the benefit of saving.