(On the Monetary Base): If the Central Bank (FED) buys government bonds, the following could happen;

Question 5: The FEDs Domestic Credit account should increase;

a): True b): False

Question 6: The Monetary Base should decrease;

a): True b): False

Question 7: The supply of money may increase;

a): True b): False

Question 8: Interest rates may increase;

a): True b): False