If the Open-Market Desk at the Fed Buys Securities, the Most

question 22

Multiple Choice

If the Open-Market Desk at the Fed buys securities, 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:

Recall

The ability to retrieve and access information or memories from the past.

Tangible Results

Outcomes or benefits of an action or process that can be seen, touched, or measured physically.

Factual Communication

The exchange of information that is based strictly on objective facts and evidence, without the influence of personal feelings or opinions.

Central Route

A pathway of persuasion described in the Elaboration Likelihood Model that involves thoughtful consideration of the arguments presented.