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:

Fructose

A simple sugar found in many plants that is sweeter than glucose and used in various foods and beverages.

Sorghum

A grain that serves as both food and fodder, known for its drought tolerance and nutritional value.

Nutrient-Rich Foods

Foods that contain high levels of vitamins, minerals, and other beneficial substances with relatively few calories.

Vitamins

Organic compounds that are essential in small amounts for maintaining normal metabolism and health.