The Federal Reserve Will Engage in Open Market Operations When

question 70

Multiple Choice

The Federal Reserve will engage in open market operations when

• A) it wants to punish private banks because they are not keeping the required level of reserves.
• B) it wants to change the money supply.
• C) it wants to change the reserve ratio.
• D) it wants to increase the total amount of reserves since government securities are considered a reserve.

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Definitions:

Flatworm

A type of simple, soft-bodied invertebrate animal that is a member of the phylum Platyhelminthes, which includes planarians, flukes, and tapeworms.

Tapeworm

A parasitic flatworm that lives in the digestive tract of vertebrates as adults, often causing health issues such as weight loss or nutrient deficiencies.

Hookworm

A parasitic nematode that lives in the small intestine of its host, which can be humans, and causes anemia and malnutrition through blood loss.

Trichinosis

Infection caused by the roundworm Trichinella spiralis.