Here Is How an Open Market Purchase Works: the Fed

question 46

Multiple Choice

Here is how an open market purchase works: The Fed __________ government securities to (from) a commercial bank,which raises the bank's deposits at the __________ and increases the bank's __________.

• A) sells; Fed; reserves
• B) buys; Fed; reserves
• C) buys; Treasury; discount loans
• D) sells; Treasury; required reserve ratio
• E) buys; Fed; liabilities

Understand the role of data visualization in exploring data sets and discovering new relationships.

Describe primary types of visuals used in presentations and their communication purposes.

Grasp the principles of graphic design that enhance the quality of visual elements.

Differentiate between formal and informal visual balance and apply appropriate design strategies for organizational websites.

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Definitions:

Adjusted Beta

A measure that adjusts a stock's historical beta, or volatility in relation to the market, to reflect both the company's current fundamentals and the tendency of a beta to move towards the market average over time.

Covariance

A measure of how two variables change together, which can indicate the degree to which they move in the same or opposite directions.

Mean-Variance Efficient Portfolio

A Mean-Variance Efficient Portfolio is an investment strategy that aims to optimize the balance between expected return and risk, as defined by the portfolio's volatility.