Open Market Operations Are Operations in Which

question 22

Multiple Choice

Open market operations are operations in which:

• A) the municipal authorities bring out policies that provide better social security benefits.
• B) the government improves the infrastructure of the economy to attract foreign investors.
• C) the Federal Reserve buys or sells Treasury securities to expand or contract the U.S. money supply.
• D) private companies establish agencies to trade their stocks in the market.
• E) the public establishes a non-profit entity to trade in the market on behalf of the community.

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Definitions:

Total Revenues

The entire amount of money received by a company from its business activities before any expenses are subtracted.

Equilibrium Point

The price and quantity at which the supply of a good matches its demand in a market, leading to a stable market condition.

S And D Curves

Supply and Demand curves, graphical representations in economics that show the relationship between the price of a good and the quantity supplied and demanded.

Maximum Amount

The highest possible quantity or level that can be reached or allowed.