Comparing the Effect on the Monetary Base Between an Open

question 34

Multiple Choice

Comparing the effect on the monetary base between an open market purchase of government securities from a bank and the same open market operation conducted with the general public,the monetary base

• A)increases by a larger amount if the general public sells the securities than if a bank sells the securities.
• B)increases by a larger amount if a bank sells the securities than if the general public sells the securities.
• C)does not change if it is the general public that sells the securities.
• D)increases by the same amount if the general public sells the securities or if a bank sells the securities.
• E)decreases by the same amount if the general public sells the securities or if a bank sells the securities.

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Definitions:

Gymnosperms

A group of seed-producing plants that includes conifers, cycads, Ginkgo, and gnetophytes, characterized by seeds that are not enclosed in an ovary.

Gnetophyta

A division of gymnosperms, with characteristics that share some similarities to angiosperms, including the genera Ephedra, Gnetum, and Welwitschia.

Gametophyte

The sexual phase in the life cycle of plants and algae that produces gametes, typically haploid.

Integuments

Protective layers of tissue that cover the body or parts of plants or seeds, serving as a barrier against environmental stresses.