Firms That Participate in Regular Open Market Transactions with the Federal

question 159

Multiple Choice

Firms that participate in regular open market transactions with the Federal Reserve are called

• A)secondary market banks.
• B)Treasury banks.
• C)primary dealers.
• D)Federal Reserve partners.

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Definitions:

Equity

The value of an ownership interest in property, including shareholders' equity in a business.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Inventory Turnover

An activity ratio that measures the liquidity of the firm’s inventory—how quickly goods are sold and replenished.

Average Collection Period

A measure of how long it takes a firm to convert a credit sale (internal store credit, not credit card sales) into a usable form (cash).