If the Fed Carries Out an Open Market Operation and Sells

question 64

Multiple Choice

If the Fed carries out an open market operation and sells U.S. government securities, as long as the federal funds interest rate remains within the corridor the federal funds rate ________ and the quantity of reserves ________.

• A) falls; increases
• B) rises; increases
• C) falls; decreases
• D) rises; decreases

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Definitions:

Criminal Justice System

An organized set of legal and governmental institutions that aim to maintain social control, deter and mitigate crime, and sanction those who violate laws with criminal penalties and rehabilitation efforts.

Cultural Relativism

The concept that beliefs, values, and practices should be understood based on an individual's own culture, rather than judged against those of another.

Ethical Relativism

The doctrine that moral values and judgments are relative to the cultural or individual context in which they occur, and are not absolute.

Ethics

The branch of philosophy that deals with questions about morality, including concepts such as good and evil, right and wrong, virtue, and justice.