When the Fed Conducts Open-Market Sales

question 45

Multiple Choice

When the Fed conducts open-market sales,

• A)it sells Treasury securities,which increases the money supply.
• B)it sells Treasury securities,which decreases the money supply.
• C)it auctions term loans,which increases the money supply.
• D)it auctions term loans,which decreases the money supply.

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Definitions:

Committees Of Safety

These were local groups established in the American colonies to organize resistance against British policies and provide revolutionary leadership.

Boycott

A form of protest involving the refusal to buy, use, or participate in something as a way to express dissatisfaction or push for change.

British Goods

Products manufactured in Great Britain, often associated with historical trade and importation contexts.

American War Of Independence

The conflict between Great Britain and thirteen of its North American colonies, which declared their independence as the United States of America.