The Fed Relies on Open-Market Operations, Which Work

question 104

Multiple Choice

The Fed relies on open-market operations, which work

• A)with the Treasury in creating money to finance bonds.
• B)through major stock exchanges to influence bond prices.
• C)directly through the nonbank public to change their assets.
• D)through the banking system by affecting their reserves.

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Definitions:

CEO

Chief Executive Officer, the highest-ranking person in a company or organization, responsible for making overarching decisions and setting strategic directions.

Informal Groups

Groups that emerge naturally due to the social interactions among the people in an organization, not officially formed by the organization.

Linking Pins

A concept in which managers are seen as linking pins connecting their subordinates with their superiors, facilitating communication and coordination.

Free-Riding

A phenomenon where individuals or entities benefit from resources, goods, or services without paying for the cost of the benefit.