When the Fed Sells Government Bonds,the Reserves of the Banking

question 181

Multiple Choice

When the Fed sells government bonds,the reserves of the banking system

• A)increase,so the money supply increases.
• B)increase,so the money supply decreases.
• C)decrease,so the money supply increases.
• D)decrease,so the money supply decreases.

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Definitions:

Cerebrum

The large mass of the forebrain, which consists of two hemispheres.

Learning

The process of acquiring new or modifying existing knowledge, behaviors, skills, values, or preferences.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Growth Spurt

A rapid increase in growth, typically occurring during puberty.