Here Is How an Open Market Purchase Works: the Fed

question 46

Multiple Choice

Here is how an open market purchase works: The Fed __________ government securities to (from) a commercial bank,which raises the bank's deposits at the __________ and increases the bank's __________.

• A) sells; Fed; reserves
• B) buys; Fed; reserves
• C) buys; Treasury; discount loans
• D) sells; Treasury; required reserve ratio
• E) buys; Fed; liabilities

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Definitions:

Marketing Costs

The total expenses associated with promoting a product, service, or brand, including advertising, promotions, and sales personnel expenses.

Copyright Infringement

The unauthorized use of copyrighted material without permission, violating the creator's exclusive rights.

Supply Chain

The entire process of making and selling commercial goods, including raw material sourcing, production, distribution, and delivery to the final customer.

Private-label

Products manufactured or provided by one company for offer under another company's brand, often positioned as lower-cost alternatives to national brands.