What Activity Does the Fed Undertake When It Carries Out

question 111

Multiple Choice

What activity does the Fed undertake when it carries out open-market operations?

• A)It buys and sells the bonds,but not the notes,of leading U.S.corporations.
• B)It changes the legal reserve requirements for member banks.
• C)It changes the discount rate,which generally increases the amount of available credit.
• D)It provides funds so that healthy depository institutions can purchase weaker ones on the open market.
• E)It deals in the purchase and sale of U.S.government securities.

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Definitions:

Interactionist Perspective

An approach in social science that emphasizes the importance of interactions between individuals and their environment in shaping behaviors and social outcomes.

Situationist

A perspective in psychology that emphasizes the importance of environmental and situational factors in influencing behavior, often in contrast to trait-based theories.

Mischel's Claims

Assertions by psychologist Walter Mischel that personality can vary significantly according to situational factors.

Personality

The set of emotional, cognitive, and behavioral patterns that are stable over time and across situations, which characterizes an individual and differentiates them from others.