Which of the Following Is NOT an Accurate Description of Open

question 94

Multiple Choice

Which of the following is NOT an accurate description of open market operations prior to 2008?

• A) It was used to affect the market for bank reserves.
• B) It was used to control the federal funds rate.
• C) It involved buying and selling short-term Treasury securities.
• D) It involved buying and selling long-term securities.

---

Definitions:

GAAP

Short for Generally Accepted Accounting Principles, a set of rules and standards designed to ensure consistency in financial reporting.

IFRS

International Financial Reporting Standards – a set of accounting standards developed by the International Accounting Standards Board (IASB) guiding the financial reporting of companies.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards used for financial reporting and accounting in the U.S. to ensure consistency and transparency.

IFRS

International Financial Reporting Standards, a set of accounting principles that dictate how transactions and other accounting events are reported in financial statements globally.