What Are Offsetting Open Markets Operations

question 73

Multiple Choice

What are offsetting open markets operations?

• A)the buying or selling of government securities to change the direction of monetary policy
• B)the buying or selling of government securities to offset a change in the monetary base in response to a random fluctuation in another factor that affects the base
• C)all of the open market operations executed by the New York Fed
• D)None of the above is correct.

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Definitions:

Traffic Lights

Traffic lights are signaling devices positioned at road intersections and pedestrian crossings to control the flow of traffic by displaying lights of standard colors (red, amber/yellow, and green) indicating stop, caution, and go, respectively.

Staring

Fixing one's gaze on someone or something for a long period, often in a manner that can be perceived as intense or aggressive.

Confounding Variable

An outside influence that changes the effect of a dependent and independent variable being examined in an experimental or observational study.

Independent Variable

A variable in an experiment that is manipulated or changed by the researcher to observe its effects on the dependent variable.