When the Fed Purchases _______, It Is Attempting to Directly

question 14

Multiple Choice

When the Fed purchases _______, it is attempting to directly stimulate the housing market.

• A)commercial paper
• B)short-term Treasury securities
• C)mortgage-backed securities
• D)consumer loans

---

Definitions:

Expected-rate-of-return

The profit or loss one anticipates on an investment relative to the amount of money invested.

Optimal R&D

The ideal level of spending on research and development that maximizes an organization's returns or benefits.

Oligopolists

Firms or entities that operate in an oligopoly, a market structure characterized by a small number of sellers that dominate the market.

R&D

Stands for Research and Development, which refers to investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.