When the Fed Buys Government Securities,the Immediate Effect of the Purchase

question 350

Multiple Choice

When the Fed buys government securities,the immediate effect of the purchase is that banks'

• A)reserves increase.
• B)deposits increase.
• C)assets increase.
• D)reserves decrease.
• E)loans decrease.

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Definitions:

Attribution Theory

A theory focused on how people explain the causes of behavior and events, attributing them to internal dispositions or external situations.

Walter Mishel

A psychologist known for his research on personality and his work on the cognitive-affective personality system.

Fritz Heider

An Austrian psychologist best known for developing attribution theory, which explores how individuals infer causes of behavior and events.

Ingroup

A social group to which an individual feels they belong, often contrasting with an "outgroup" to which they do not identify.