If the Fed Carries Out an Open Market Operation to Buy

question 153

Multiple Choice

If the Fed carries out an open market operation to buy U.S. government securities, the federal funds rate ___________and the quantity of reserves___________ .

• A) rises; increases
• B) falls; increases
• C) falls; decreases
• D) rises; decreases

---

Definitions:

Breathing While Asleep

A natural and essential physiological process that involves the inhalation of oxygen and exhalation of carbon dioxide during sleep.

Cessations

The act of stopping or discontinuing an action or behavior.

Narcolepsy

A sleep disorder characterized by uncontrollable sleep attacks. The sufferer may lapse directly into REM sleep, often at inopportune times.

Sleepiness

The state or condition of feeling the need for sleep, often accompanied by lethargy and decreased alertness.