To Conduct Open Market Operations, the FOMC Issues a Directive

question 10

Multiple Choice

To conduct open market operations, the FOMC issues a directive to

• A)the trading desk at the Federal Reserve Bank of New York.
• B)the Board of Governors in Washington, D.C.
• C)the presidents of the district banks.
• D)the chairman of the New York Stock Exchange.

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Definitions:

Attitudinal Foundations

The basic underlying beliefs or attitudes that shape an individual's perception, behavior, and response to various situations.

Intuition

The ability to understand or know something immediately based on feelings rather than facts or evidence.

Sympathetic Nervous

Pertaining to the part of the autonomic nervous system involved in preparing the body for rapid, involuntary action in response to stress.

Parasympathetic Nervous

Part of the autonomic nervous system that conserves energy by slowing the heart rate and increasing intestinal and gland activity.