From Time to Time, the Federal Reserve Sells Various Quantities

question 136

Multiple Choice

From time to time, the Federal Reserve sells various quantities of government bonds to the private sector through a process called

• A) bond recall procedures.
• B) backflip bond investments.
• C) open market sales.
• D) voluntary redemption procedures.

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Definitions:

Legal

Pertains to the system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Existing Duty

An obligation that a party is already legally bound to under the terms of a contract or by law.

Quantum Meruit

A legal principle where a person is compensated for services or goods provided when no contract exists, based on the value of the work done.

Satisfaction of Debt

The fulfillment or payment of a debt in its entirety, releasing the debtor from further obligations.