To Conduct Open Market Operations, the FOMC Issues a Directive

question 10

Multiple Choice

To conduct open market operations, the FOMC issues a directive to

• A)the trading desk at the Federal Reserve Bank of New York.
• B)the Board of Governors in Washington, D.C.
• C)the presidents of the district banks.
• D)the chairman of the New York Stock Exchange.

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Definitions:

Social Influence

Process whereby attitudes and behaviour are influenced by the real or implied presence of other people.

Leadership

Getting group members to achieve the group’s goals.

Power

Capacity to influence others while resisting their attempts to influence.

Informational Power

Influence derived from possessing knowledge or information that others perceive as valuable or essential.