Open Market Operations Do Which of the Following

question 36

Multiple Choice

Open market operations do which of the following?

• A)create a link between the Fed's actions and the nation's money supply
• B)affect the supply of reserves available to depository institutions
• C)have an impact on the liquidity of the financial system
• D)All of the above are correct.

---

Definitions:

Accounts Payable

Represents the amount a company owes to suppliers or vendors for goods or services received that haven't been paid for yet.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product.

Uncollectible

Debt or receivables that are considered impossible to collect, potentially due to the debtor's inability to pay.

Budgeted Cash Disbursements

Budgeted cash disbursements are forecasted cash payments during a specific period, part of cash flow planning.