If the Fed Sells Government Securities to a Member of the Nonbank

question 63

Multiple Choice

If the Fed sells government securities to a member of the nonbank public,then the resulting effect on the quantity of money is

• A)much larger than if the securities were sold to a bank.
• B)much smaller than if the securities were sold to a bank.
• C)the same as if the securities were sold to a bank.
• D)that there is no change in the quantity of money.
• E)None of the above answers is correct.

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Definitions:

Heart Rate

The number of heart beats per minute, a measure of the heart's activity and an important indicator of health and fitness.

Systemic Circulation

Refers to the part of cardiovascular circulation which carries oxygenated blood away from the heart to the body, and returns deoxygenated blood back to the heart.

Pump Blood

The process of moving blood through the chambers of the heart and throughout the body's circulatory system to provide oxygen and nutrients to tissues and remove waste products.

Labeled Structure

A diagram or model of an object with parts named or marked for identification and explanatory purposes.