When the Federal Reserve sells securities that are purchased by individuals, the money supply is increased.
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Q1: Commercial banks may buy and sell reserves
Q2: When the Federal Reserve buys securities, the
Q3: When corporations retire (pay off) loans from
Q4: The presidents of the District Banks elect
Q5: The Federal Open Market Committee (FOMC) has
Q7: The federal funds rate is the interest
Q8: Reserve requirements are infrequently changed to affect
Q9: The power to create money is given
Q10: If the Treasury borrows from the Federal
Q11: Deflation is a period of declining prices.
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