The Fed Sets Up the Term Auction Facility When It

question 56

Multiple Choice

The Fed sets up the Term Auction Facility when it wants to:

• A) inject a certain quantity of reserves into banks.
• B) tighten the money supply in the economy.
• C) sell a portion of the government bonds it holds.
• D) close the discount window.

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Definitions:

Factoring

The process of breaking down an equation or number into its constituent parts, or 'factors', that multiply together to form the original number or equation.

Equation

A declaration in the field of mathematics that two expressions possess equal value.

Factoring

A mathematical process of breaking down an expression into simpler components that, when multiplied together, produce the original expression.

Equation

A mathematical statement that asserts the equality of two expressions, typically formatted as 'expression = expression'.