The Fed Uses Open Market Operations to

question 265

Multiple Choice

The Fed uses open market operations to

• A) determine the required reserve ratio.
• B) determine the discount rate.
• C) buy or sell government securities.
• D) determine the federal funds rate.

---

Definitions:

Government of Canada Bond

A debt security issued by the Canadian government to support government spending.

Maturity Date

The specified date on which the final payment of a loan, bond, or other financial instrument must be paid in full.

Par Value

The face value of a bond or stock, as stated by the issuing company.

Coupon

The interest payment made to the bondholders during the life of the bond.