Through Open Market Operations,the Fed Is Able to Influence

question 2

Multiple Choice

Through open market operations,the Fed is able to influence

• A)The stock market but not the bond market.
• B)Automatic stabilizers.
• C)Portfolio decisions.

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Definitions:

Bargained-for Exchange

A fundamental principle of contract law that involves a mutual exchange of value or promises between parties.

Enforceable Promise

A commitment in a contract that is legally binding and can be upheld in court.

Substituted Contract

An agreement made to replace a prior contract, which was agreed upon by all original parties and extinguishes the obligations of the first agreement.

Legal Detriment

A loss or disadvantage suffered by a party who acts or refrains from acting in a legal transaction.