Open Market Operations Involve

question 83

Multiple Choice

Open market operations involve:

• A)opening the discount window.
• B)buying stocks in the stock market.
• C)buying and selling government securities in the open market.
• D)opening new markets for commodities.
• E)selling failed banks to other banks.

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Definitions:

FA/Sales Ratio

Fixed Assets to Sales Ratio; measures the efficiency of a firm's use of its fixed assets to generate sales.

Financial Forecast

A prediction of future revenues, expenses, and profits of a company, used for budgeting and strategic planning.

Fixed Assets

Assets that are purchased for long-term use and are not likely to be converted quickly into cash, such as buildings, land, and machinery.

Pro Forma Financial Statements

Financial statements that project the financial position of a company, based on certain assumptions and typically used for future planning.