The Fed Engages in Open Market Operations and Sells Government

question 63

Multiple Choice

The Fed engages in open market operations and sells government securities. The result is

• A) a lower federal funds rate.
• B) a higher federal funds rate.
• C) an unchanged federal funds rate because other interest rates did not change.
• D) More information is needed to determine what happens to the federal funds rate.

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Definitions:

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