If the Open-Market Desk at the Fed Buys Securities When

question 23

Multiple Choice

If the Open-Market Desk at the Fed buys securities when the federal funds rate is below the primary credit discount rate, the most likely effect is that the

• A)federal funds rate decreases.
• B)primary credit discount rate decreases.
• C)primary credit discount rate increases.
• D)federal funds rate increases.

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Definitions:

Adlerian Theory

A psychological approach focusing on individual psychology and the importance of feelings of inferiority and striving for superiority.

Responsibility

The condition of being responsible for addressing an issue or being in charge of someone.

Adlerian Theory

A psychological perspective emphasizing the importance of societal factors, individual lifestyle, and the concept of inferiority feelings on behavior.

Cooperation

The action or process of working together towards the same end, often seen as essential in social and professional contexts.