Open Market Operations Refer to the Purchase or Sale of ________

question 40

Multiple Choice

Open market operations refer to the purchase or sale of ________ to control the money supply.

• A)corporate bonds and stocks by the Federal Reserve
• B)U.S.Treasury securities by the Federal Reserve
• C)corporate bonds and stocks by the U.S.Treasury
• D)U.S.Treasury securities by the U.S.Treasury

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Definitions:

Credit Sales

Sales made by a business that are to be paid for by the customer at a later date.

Cash Receipts

The total amount of cash collected by a business during a specific period, including payments from customers and other sources.

Budgeted Sales Data

Predictions or estimates of the sales, both in units and financial terms, that a company expects to achieve in a future period.

Sales On Account

Transactions where goods or services are sold with the agreement that payment will be made at a later date, typically recorded as accounts receivable.