The Monetary Expansion Process from an Open Market Operation Continues

question 376

Multiple Choice

The monetary expansion process from an open market operation continues until

• A) required reserves are eliminated.
• B) the discount rate is lower than market interest rates.
• C) the Federal Reserve takes actions to stop the process.
• D) excess bank reserves are eliminated.

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Definitions:

Discipline

The practice of training people to obey rules or a code of behavior, using punishment to correct disobedience.

Inspecting

The process of examining something closely in order to gain information.

Unrestricted

Free from limitations, controls, or restrictions; allowing complete freedom of movement, action, or use.

Condone

To overlook, forgive, or disregard an offense without protest or censure.