Open-Market Operations Involve

question 155

Multiple Choice

Open-market operations involve

• A) monitoring the reserve requirement.
• B) the buying and selling of bonds.
• C) increasing and decreasing interest rates.
• D) participating with the IMF.

---

Definitions:

Marginal Cost

The additional cost incurred from producing one more unit of a product or service.

Average Total Cost

The total cost of producing a given quantity of output divided by that quantity, representing the per unit cost of production.

Operate

To control the functioning of; to manage and direct the operations of a system, process, machine, or organization.

Shut Down

The temporary or permanent cessation of operations, typically referring to businesses closing due to economic difficulties or other factors.