Buying and Selling U

question 79

Multiple Choice

Buying and selling U.S. Treasury Securities for the Fed's own portfolio is called:

• A) managing the float.
• B) discount buying.
• C) open market operations.
• D) reserve adjustment.

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Definitions:

Monopolistic Competition

A trading environment where countless firms peddle products that bear resemblance but are not exact duplicates, offering them a fragment of control in the marketplace.

Pure Monopoly

A market structure where a single firm controls the entire market for a product or service, with no close substitutes and significant barriers to entry.

Allocatively Inefficient

A situation where resources are not distributed in a way that maximizes the benefits to society, often leading to a loss of economic welfare.

Marginal Benefit

The additional satisfaction or utility gained from receiving or consuming one more unit of a good or service.