The Fed's Open Market Operations Normally Involve Only the Purchase

question 93

Multiple Choice

The Fed's open market operations normally involve only the purchase of government securities,particularly those that are short-term. However,during the crisis,the Fed started new programs to purchase

• A)mortgage-backed securities and long-term Treasuries.
• B)mortgage-backed securities and Treasury bills.
• C)commercial papers and short-term Treasuries.
• D)Treasury bills and Treasury notes.

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