There Are Two Types of Open Market Operations: ________ Open

question 100

Multiple Choice

There are two types of open market operations: ________ open market operations are intended to change the level of reserves and the monetary base,and ________ open market operations are intended to offset movements in other factors that affect the monetary base.

• A)defensive;dynamic
• B)defensive;static
• C)dynamic;defensive
• D)dynamic;static

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Definitions:

Indifference Principle

If an asset is mobile, then in long-run equilibrium, the asset will be indifferent about where it is used; that is, it will make the same profit no matter where it goes.

Garbage Collector

An individual or entity responsible for collecting and disposing of waste material from public or designated areas.

Relatively Higher

A comparative term indicating that one variable or item is of greater magnitude or intensity compared to another or the general context.

Competitive Industry

An industry characterized by many sellers, where no single company can control market prices.