Which of the Following Is an Example of an Open

question 71

Multiple Choice

Which of the following is an example of an open market operation?

• A) Fed reducing the discount window for banks
• B) Fed imposing selective credit controls
• C) Fed buying Treasury bonds
• D) Fed increasing the discount rate for banks
• E) Fed increasing the reserve requirement on deposits

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Definitions:

Net Income

Net income refers to the total profit of a company after all expenses and taxes have been subtracted from total revenue.

CCA Tax Shield

A tax benefit derived from the depreciation expense allowed on tangible property for tax purposes, reducing taxable income.

Class 8 Equipment

Heavy-duty machinery typically used in the transport and logistics industry, such as 18-wheel trucks.

Tax Rate

The chunk of income designated by the government to be taken as tax from corporations or the public.