If the Fed Desires to ____ the Money Supply Using

question 43

Multiple Choice

If the Fed desires to ____ the money supply using open market operations, it would instruct the trading desk to ____ government securities.

• A)increase; purchase
• B)increase; sell
• C)decrease; purchase
• D)Answers B and C are correct.

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Definitions:

Manager-Managed

A structure typically used in limited liability companies (LLCs) where the management is officially assigned to one or more managers rather than being directed by all members.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Test-Market

A process used by companies to evaluate the viability of a new product or service in a limited geographic area before a wide-scale launch.

Duration

The length of time something lasts or continues.