When the Federal Reserve Engages in a Repurchase Agreement to Offset

question 58

Multiple Choice

When the Federal Reserve engages in a repurchase agreement to offset a withdrawal of Treasury funds from the Federal Reserve,the open market operation is said to be

• A)defensive.
• B)offensive.
• C)dynamic.
• D)reactionary.

---

Definitions:

Chesapeake Area

A region encompassing parts of Virginia and Maryland known for its significant historical, cultural, and economic development during the colonial and early United States periods.

American Exports

entails goods and services produced in the United States that are sold and shipped to other countries.

Tobacco

A plant that contains nicotine and is grown for its leaves, which are dried and processed for smoking, chewing, or as snuff.

West Indies

A region in the Caribbean basin that encompasses a group of islands known for their diverse cultures, colonial history, and significant role in the global economy, especially during the era of the Atlantic slave trade.