When the Fed Wants to Undertake Open Market Operations, It

question 57

Multiple Choice

When the Fed wants to undertake open market operations, it

• A) buys or sells government securities.
• B) can require all commercial banks to buy from or sell to it.
• C) buys government securities from or sells Government securities to the federal government.
• D) can require all member banks to buy from or sell to it.

---

Definitions:

Minimization

The strategy or action of reducing or keeping something to its smallest amount or degree.

Justification

The act of providing reasons or explanations for behaviors, decisions, or beliefs.

Eye Contact

Direct visual connection between two individuals, signifying various social and emotional meanings.

Physical Contact

The act of touching or being in direct contact with another person or object.