When the Fed Engages in Open Market Operations, It Is

question 57

Multiple Choice

When the Fed engages in open market operations, it is buying or selling

• A)loans made to banks to meet the legal reserve requirement ratio.
• B)U.S. government securities.
• C)U.S. government securities newly issued by the U.S. Treasury.
• D)gold.
• E)capital equipment.

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Definitions:

Credits

In accounting, credits are entries that decrease assets or increase liabilities and equity on a company's balance sheet.

Double-entry Bookkeeping System

A method of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account, ensuring the accounting equation is always in balance.

Fraud

A deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Trial Balance

A bookkeeping report that lists the balances in each general ledger account at a specific time, ensuring that debits equal credits.