Open Market Operations Refer To

question 177

Multiple Choice

Open market operations refer to:

• A) the buying and selling of stocks in the stock market.
• B) the buying and selling of government bonds by the Fed.
• C) decisions by the Fed to raise or lower interest rates.
• D) decisions by the Fed to increase or decrease the money multiplier.

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Definitions:

Digit-Span

A common memory test that measures the capacity of one's short-term memory to recall a sequence of numbers.

Short-Term Memory

A component of memory where small amounts of information can be stored for a short period of time.

Working Memory

The part of short-term memory that is concerned with immediate conscious perceptual and linguistic processing.

Short-Term Memory

The part of the memory system where information is stored for a short duration, typically seconds to minutes, before it is either forgotten or transferred to long-term memory.