When the Fed Wants to Expand the Money Supply Through

question 123

Multiple Choice

When the Fed wants to expand the money supply through open-market operation, it

• A)sells government securities to the Treasury.
• B)sells government securities to member banks.
• C)buys government securities from member banks.
• D)buys government securities from the Treasury.

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Definitions:

Business Law

A branch of law that deals with the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales.

Intoxicated

A condition of having physical or mental control significantly impaired by drugs or alcohol.

Defamation

A false statement or an action that harms the reputation or character of an individual, business, product, group, government, or nation.

Capacity

In legal terms, the ability of an individual or entity to enter into a contract, often requiring them to be of legal age and sound mind.