The Fed Engages in Open Market Operations and Sells Government

question 70

Multiple Choice

The Fed engages in open market operations and sells government securities. The result is

• A) a lower federal funds rate.
• B) an unchanged federal funds rate because other interest rates did not change.
• C) a higher federal funds rate.
• D) More information is needed to determine what happens to the federal funds rate.

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Definitions:

Parenting

The actions and practices involved in raising and nurturing children from infancy through adulthood.

Permissive Pattern

A parenting style characterized by low demands with high responsiveness.

Authoritarian Style

A parenting or leadership style characterized by strict rules, high expectations, and little open dialogue between authority figures and those they govern.

Carol Gilligan

An American feminist, ethicist, and psychologist best known for her work on gender differences in moral development.