The Fed Can Implement Open Market Operations

question 28

Multiple Choice

The Fed can implement open market operations

• A)more rapidly than changes in reserve requirements, but less rapidly than changes in the discount rate.
• B)more rapidly than changes in the discount rate, but less rapidly than changes in reserve requirements.
• C)less rapidly than either changes in the discount rate or changes in reserve requirements.
• D)more rapidly than either changes in the discount rate or changes in reserve requirements.

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Definitions:

Magna Carta

A charter of liberties to which the English barons forced King John to give his assent in June 1215 at Runnymede, a foundational document limiting the power of the monarchy.

English Liberties

The fundamental rights and freedoms traditionally enjoyed by English subjects, often cited as a historical basis for modern democratic liberties.

Ideal Government

A theoretical or conceptual government considered to be the best possible, often involving principles of justice, equality, and effective governance.