Author Question: When the Fed buys 100 million of securities from a commercial bank, the A) monetary base ... (Read 83 times)

burton19126 · **on:** Jun 29, 2018

When the Fed buys 100 million of securities from a commercial bank, the

A) monetary base increases.
B) money supply decreases.
C) bank's reserves decrease.
D) required reserve ratio decreases.
E) bank is risking its depositors' money.

Question 2

Effective cooperation among the members of a commercial society is more likely when

A) economic decisions are placed in the hands of democratically-elected committees.
B) everyone's income is approximately the same.
C) people produce for use rather than for profit.
D) prices do not change in response to temporary changes in circumstances.
E) property rights are clearly defined.