Although Open Market Operations and Discount Loans Both Change the Monetary

question 46

Multiple Choice

Although open market operations and discount loans both change the monetary base, the Fed has

• A)greater control over open market operations than over discount loans.
• B)greater control over discount loans than over open market operations.
• C)very little control over either discount loans or open market operations.
• D)complete control over both discount loans and open market operations.

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Definitions:

Perfected

Refers to the completion of all necessary legal steps or procedures to enforce rights, often used in the context of securing interests in collateral under law.

Possession

The act of having physical control over property or goods, with or without the right to own them.

Prescribed Hold-Back

A specific amount of money withheld from a contractor to ensure all obligations are met before full payment.

Liens

Legal claims against a property that must be paid off when the property is sold, ensuring that creditors are compensated.