Open-Market Operations Describe the

question 37

Multiple Choice

Open-market operations describe the

• A) government policy, beginning in the 1950s, of reducing tariffs on foreign products.
• B) requirement that publicly owned businesses honestly report their earnings and losses.
• C) method by which the Federal Reserve buys and sells government securities to increase or decrease the supply of money in the economy.
• D) policy of deregulation pursued during the 1980s by the Reagan administration.

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Definitions:

Pension Outflow

A financial term referring to payments made to retired employees or beneficiaries from a pension fund.

Lease Payment

Regular payments made by a lessee to a lessor for the use of an asset over the lease term, according to the lease agreement.

Affiliate Company

An entity that is controlled by or is under common control with another company, typically through ownership or influence.

Comparative Balance Sheet

Financial statements that present the financial position of a company at different points in time, side by side, to facilitate comparison.