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If the Fed Carries Out an Open Market Operation and Sells

question 65

True/False

If the Fed carries out an open market operation and sells U.S. government securities, the federal funds rate falls and the quantity of money increases.


Definitions:

Power Steering Pump

The gear- or belt-driven pump that supplies pressurized fluid to the steering gearbox.

Vacuum

In an engine, air pressure that is lower than atmospheric pressure.

Hydro-Boost

A power brake booster that uses hydraulic pressure from the power steering system to assist in braking.

Power Steering System

A system in vehicles that uses hydraulic or electric power to assist the driver in steering, reducing manual effort.

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