Open Market Operations Intended to Offset Movements in Noncontrollable Factors

question 59

Multiple Choice

Open market operations intended to offset movements in noncontrollable factors (such as float) that affect reserves and the monetary base are called

• A)defensive open market operations.
• B)dynamic open market operations.
• C)offensive open market operations.
• D)reactionary open market operations.

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Definitions:

Head-of-government

The official who leads the executive branch of a government, typically responsible for implementing and enforcing laws and overseeing the day-to-day administration.

Emerging Market

An emerging market is a country with some characteristics of a developed market but does not meet standards to be fully termed as such. These markets are characterized by rapid growth and volatility, offering high risk and potential reward to investors.

Free Trade Policy

An approach by governments to increase economic prosperity by allowing goods and services to be traded across borders with minimal restrictions or tariffs.

Foreign Investment

Investment in business ventures or assets in a country by individuals or businesses from another country.