An Open Market Purchase of Treasury Securities by the Federal

question 148

True/False

An open market purchase of Treasury securities by the Federal Reserve causes the reserves of banks to rise.

---

Definitions:

Value-Added Time

The duration during which a product or service is being modified or enhanced to increase its value to the customer.

Throughput Time

The elapsed time from when production is started until finished goods are shipped.

Factory Floor

The operational area within a manufacturing plant where goods are actually produced, typically housing machinery, assembly lines, and workers.

Warehouse

A facility for storing goods, merchandise, and materials before they are distributed for sale or use.