By Using Open Market Operations, the Federal Reserve

question 226

Multiple Choice

By using open market operations, the Federal Reserve

• A) adjusts the supply of reserves to keep the federal funds interest rate equal to its target.
• B) adjusts the supply and demand of reserves to keep the federal funds interest rate equal to its target.
• C) adjusts the demand of reserves to keep bank rates in line with the federal funds rate target.
• D) controls banks' demand for reserves, thereby keeping the federal funds rate equal to its target.

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Definitions:

US Laborers

Refers to workers in the United States, particularly those engaged in manual or industrial jobs, and their roles within the nation's workforce and economy.

Foreign-born

Individuals living in a country who were not born there, often contributing to the cultural diversity and population growth of the host nation.

Railroad Industry

A sector of the economy involving the operation of trains and tracks for the transportation of goods and passengers, playing a key role in industrial development.

1870

The year that marks a significant period post-Civil War in the United States, characterized by Reconstruction efforts and the early stages of industrialization.