Open Market Operations Are the

question 231

Multiple Choice

Open market operations are the

• A)purchase or sale of government securities by the Fed.
• B)lending of reserves to the banking system by the Fed.
• C)borrowing of reserves by the Fed from the banking system.
• D)minimum percentage of loans that banks must retain as reserves in the open market.
• E)purchase or sale of gold by the Fed.

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Definitions:

Disclosed Principals

The concept in agency law where an agent's third party is aware of the identity of the principal, thus establishing contractual or legal relationships.

Scope of Employment

Refers to the range of activities and duties that an employee is expected to perform as part of their job.

Negligence

Behavior that creates an unreasonable risk of harm to others.

Liability

The state of being legally responsible for something, especially in terms of debts or legal obligations.