What Activity Does the Fed Undertake When It Carries Out

question 111

Multiple Choice

What activity does the Fed undertake when it carries out open-market operations?

• A)It buys and sells the bonds,but not the notes,of leading U.S.corporations.
• B)It changes the legal reserve requirements for member banks.
• C)It changes the discount rate,which generally increases the amount of available credit.
• D)It provides funds so that healthy depository institutions can purchase weaker ones on the open market.
• E)It deals in the purchase and sale of U.S.government securities.

---

Definitions:

Automotive

Pertaining to the design, production, and operation of motor vehicles.

Light-duty Truck Equivalent

A classification for trucks and commercial vehicles based on weight, design, and usage, typically for less demanding transportation tasks.

J1939 Data Bus

A communications network protocol used in heavy-duty vehicles, allowing electronic control units (ECUs) to communicate.

SAE J1939 Data Bus

The SAE J1939 data bus is a high-level protocol for communication among nodes in heavy-duty vehicles, providing standardized messaging for diagnostics, control, and monitoring.