Which of the Following Entities Actually Executes Open-Market Operations

question 14

Multiple Choice

Which of the following entities actually executes open-market operations?

• A)the Board of Governors
• B)the New York Federal Reserve Bank
• C)the Federal Open Market Committee
• D)the Open Market Committees of the regional Federal Reserve Banks

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Definitions:

Reporting Bias

A tendency to selectively choose or promote certain outcomes, data, or studies over others, which can lead to a distorted view of reality.

Incentive Bias

The tendency of an individual or entity to act in a way that is more favorable for their interests due to the promise of a reward or bonus.

Incentive Fee

A fee paid to a fund manager based on performance; typically a percentage of the fund's profits.

Risk-free Interest Rate

The yield from an investment that carries no risk of losing money, often linked to government securities.