As a Result of an Open Market Purchase, Bank Reserves

question 81

Multiple Choice

As a result of an open market purchase, bank reserves

• A)rise and interest rates fall.
• B)fall and interest rates rise.
• C)and interest rates both rise.
• D)and interest rates both fall.

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Definitions:

Operating Expenses

Costs associated with the daily operations of a business, excluding direct costs of producing goods or services.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.

Investment Turnover

A ratio that measures the efficiency of a company in using its investments to generate sales revenue, reflecting how effectively assets are being utilized.

Operating Income

The amount of profit realized from a business's operations after deducting operating expenses like wages, depreciation, and cost of goods sold.