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.

---

Definitions:

Daydreaming

The act of engaging in spontaneous, fanciful thoughts or fantasies while awake, often unrelated to the immediate physical environment.

Homosexual Woman

A woman who is sexually and/or romantically attracted to other women, also referred to as a lesbian.

Lesbian

A term used to describe a woman who is emotionally and sexually attracted to other women.

Bisexual

Refers to a sexual orientation where an individual is attracted to both male and female genders.