Open-Market Operations Are

question 80

Multiple Choice

Open-market operations are:

• A) sales or purchases of government securities, by the Fed, to or from banks on the open market.
• B) regulations that set the minimum fraction of deposits banks must hold in reserve.
• C) lending facilities that allow banks to borrow reserves from the Fed at a discounted interest rate.
• D) sales or purchases of financial instruments on the open market.

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Definitions:

Responsibility Accounting System

A system of accounting that involves assigning revenues and costs to the individuals or departments that are directly responsible for them.

Expenses

The money spent or costs incurred in an entity's efforts to generate revenue, representing the cost of doing business.

Managers

Individuals responsible for planning, directing, and overseeing the operations and fiscal health of a business unit or department.

Balanced Scorecard

A management and planning system designed to align an organization’s activities with its vision and strategy, enhance communication within and outside the organization, and track the organization's performance in comparison to its strategic objectives.