An "Open Market Operation" Is Said to Occur When the Fed

question 45

Multiple Choice

An "open market operation" is said to occur when the Fed

• A) arranges for the merger of two banks.
• B) changes the interest rate at which it lends reserves.
• C) transfers reserves between banks.
• D) buys or sells government securities.

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Definitions:

Threshold Method

A technique used in various fields, including psychology and neuroscience, to determine the point at which a stimulus is strong enough to be detected or produce a response.

Noise

Unwanted or distracting sounds that can interfere with communication or concentration.

Guthrie

An American psychologist who proposed the theory of contiguity, suggesting that learning occurs when a stimulus and response occur close together in time.