If the Fed Decides to Engage in an Open Market

question 37

Multiple Choice

If the Fed decides to engage in an open market operation to increase the money supply, what will it do?

• A) Sell Treasury bonds, bills, or notes on the bond market.
• B) Buy Treasury bonds, bills, or notes on the bond market.
• C) Increase the required reserve ratio.
• D) Increase the fed funds rate.

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Definitions:

Deposed

To remove from office or power, often used in the context of legal or formal questioning to obtain testimony from a witness.

Product's Utility

The usefulness or functionality of a product in satisfying a consumer's need or want.

Unsafe Character

A term that may describe a person's disposition that poses a risk to themselves or others but is not widely used in a specific technical sense. (Assumed explanation as term is uncommon)

Substitute Product

A product that a consumer can purchase instead of another product due to similarities in function or utility, typically affecting consumer choices and market competition.