Open Market Operations Refer To

question 177

Multiple Choice

Open market operations refer to:

• A) the buying and selling of stocks in the stock market.
• B) the buying and selling of government bonds by the Fed.
• C) decisions by the Fed to raise or lower interest rates.
• D) decisions by the Fed to increase or decrease the money multiplier.

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Definitions:

Supply

The overall quantity of a particular product or service that is accessible to buyers.

Demand

The desire and ability of consumers to purchase a good or service at a given price.

Price

The amount of money required to purchase a good, service, or resource.

Quantity

Quantity refers to the amount or number of units of a product or service available or demanded in the market.