The Primary Objective of Fed Open Market Activity Is to Alter

question 81

True/False

The primary objective of Fed open market activity is to alter the price of bonds and their yields.
By influencing bond prices and yields,the Fed is essentially playing a role in setting interest rates for the overall economy because many rates are based on bond interest rates.

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Definitions:

Shift

A change in position, direction, or tendency, often used in the context of supply and demand curves in economics.

Scientific Judgments

Decisions or conclusions based on empirical evidence and logical reasoning within the scientific method.

Economists

Professionals specialized in the study of how societies use resources to produce valuables and distribute them among individuals.

Regulation

The imposition of rules by government, often intended to manage an economy or ensure compliance with standards.