The Two Types of Open Market Operations Are

question 86

Multiple Choice

The two types of open market operations are

• A)offensive and defensive.
• B)dynamic and reactionary.
• C)active and passive.
• D)dynamic and defensive.

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Definitions:

Selling Price

The amount a buyer pays to purchase a product or service from a seller.

Variable Cost

A cost that varies with the level of output or production, such as materials and labor directly involved in manufacturing.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent or a salaried employee's wages.

Variable Costs

Expenses that change in proportion to the activity or volume of production, sales, or services rendered.