Open Market Operations Refer to the Buying and Selling of ________

question 101

Multiple Choice

Open market operations refer to the buying and selling of ________ by the ________ to control the money supply.

• A)Treasury securities; Treasury Department
• B)Treasury securities; Federal Reserve
• C)stocks and bonds; Treasury Department
• D)stocks and bonds; Federal Reserve

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Definitions:

Step-Variable Costs

Costs that remain fixed for certain levels of production or capacity but can change in steps when a critical level is surpassed.

Fixed Costs

Expenses that remain constant for a given period of time regardless of the level of outputs or activity.

Step-Fixed Costs

Costs that remain constant for a certain level of activity but jump to a higher level when activity increases beyond that threshold.

Production Line

A production line is an arrangement of machines and workers in a factory where a succession of operations is performed on a product to complete its manufacture.