How Did the Fed's Conduct of Open Market Operations Change

question 190

Multiple Choice

How did the Fed's conduct of open market operations change during the economic crisis of 2008?

• A) Open market operations are no longer the most common tool that the Fed utilizes.
• B) The Fed now buys and sells a broader range of assets than only government securities.
• C) The Federal Open Market Committee cannot act without the approval of the Treasury.
• D) The Fed now must have adequate funds available before purchasing government securities.

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Definitions:

Behavioral Observations

The systematic recording and analysis of actions and behaviors in a natural or controlled setting.

Big Five

A model describing five broad dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Correlate

To possess a reciprocal relationship or link, where one entity influences or is contingent upon another.

Conscientiousness

A character quality marked by being well-organized, reliable, and having a profound dedication to responsibility.