Open Market Operations Involve

question 88

Multiple Choice

Open market operations involve

• A)the buying and selling of U.S. common stocks by the Fed.
• B)the buying and selling of U.S. mutual funds by the Fed.
• C)the buying and selling of U.S. government securities by the Fed.
• D)All of the above

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Definitions:

National Debt

The total amount of money that a country’s government has borrowed by issuing securities, usually through selling bonds.

Federal Receipts

Revenues collected by the federal government, primarily through taxes, but also including other sources such as customs duties and earnings from the Federal Reserve's operations.

Recession

A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Outlays

Expenses or expenditures made by a government, organization, or individual.