When the Fed Buys a Security from a Financial Firm

question 98

Multiple Choice

When the Fed buys a security from a financial firm and the financial firm agrees to buy back the security the next day,the transaction is known as

• A)a repurchase agreement.
• B)a reverse repurchase agreement.
• C)an open market flip-flop.
• D)a federal funds swap.

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Definitions:

Multirange Ammeter

An ammeter capable of measuring current over various ranges with the ability to adjust sensitively to different maximum current levels.

Full Scale

Full scale denotes the maximum limit of measurement capacity that an instrument or device can accurately read or represent.

Single Range

Pertains to instruments or devices that operate within a single, uninterrupted span of measurement values without needing to switch scales or modes.

DC Current

Direct Current, emphasizing its role as steady electrical current flowing in one uniform direction.