When the Fed Conducts Open-Market Sales

question 45

Multiple Choice

When the Fed conducts open-market sales,

• A)it sells Treasury securities,which increases the money supply.
• B)it sells Treasury securities,which decreases the money supply.
• C)it auctions term loans,which increases the money supply.
• D)it auctions term loans,which decreases the money supply.

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Definitions:

Accounting Information

Financial data and records concerning an entity's transactions and financial status, which are used for analysis, reporting, and decision-making.

External User

Individuals or entities outside of a company who have an interest in the company's financial information for decision-making purposes, such as investors or creditors.

Accounting Information

Financial data and records about a company's transactions, financial performance, and condition.

Unlimited Personal Liability

A legal structure in certain business types where owners are personally responsible for all of the business's debts, without any limit on the amount for which they can be liable.