The Fed Often Employs Variants of Simple Open Market Purchases

question 35

Multiple Choice

The Fed often employs variants of simple open market purchases and sales, and these are called ________.

• A) the trading agreements of the Federal Reserve Bank of New York.
• B) the repurchase agreement (or repo) and the reverse repo.
• C) matched sale or a matched sale-purchase transaction
• D) open market operations

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Definitions:

Tap

A tool used to cut internal threads into a hole, creating a surface that can accommodate a screw or bolt.

American Society of Mechanical Engineers

A professional association that sets engineering standards, focusing on mechanical engineering.

ASME

American Society of Mechanical Engineers, a professional association that sets codes and standards for engineering practices, especially concerning mechanical engineering.

Threads

The helical structure on a cylindrical object such as a screw or bolt, allowing it to be screwed into a corresponding threaded hole or nut.