Open Market Operations

question 31

Multiple Choice

Open market operations

• A)lack flexibility because only very small purchases or sales may be carried out in any given month.
• B)lack flexibility because open market purchases cannot easily be offset by subsequent open market sales.
• C)are more flexible than other policy tools.
• D)may be carried out only on the third Friday of each month.

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Definitions:

Influence Tactics

Strategies or methods used by individuals to persuade or direct others' behaviors and decision-making in a desired manner.

Immediate Outcome

The direct and initial result of an action or event, occurring as a direct consequence of that action or event.

Delayed Outcome

A result or effect that does not manifest immediately after the initiating action, but appears after a certain period of time.

Effects

The results or outcomes that are caused by some action, condition, or event.