When the Fed Sells Government Securities in the Open Market,the

question 20

Multiple Choice

When the Fed sells government securities in the open market,the money supply ________ because ________.

• A)decreases;banks lose liquidity,they make fewer loans and checking account deposits decrease
• B)increases;banks gain liquidity,they make more loans and checking account deposits increase
• C)increases;banks lose liquidity,they make more loans and checking account deposits increase
• D)decreases;banks gain liquidity,they make fewer loans and checking account deposits decrease
• E)none of the above

Learn about the strategic use of pricing to achieve market entry, market positioning, and competitive advantage.

Describe the dynamics of price setting in response to market conditions and competitor actions.

Understand the concept of price elasticity and its determinants.

Recognize the impact of brand loyalty on market dynamics and pricing strategies.

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Definitions:

Performance Based Pay

A compensation strategy that ties employee pay directly to their performance and achievements, varying with the individual's or team's achievements.

Organization Value

The core principles and beliefs that guide an organization's decisions and behavior, influencing its culture and identity.

Maximizing Contribution

Maximizing contribution involves strategies and practices designed to enhance the involvement, performance, and productivity of individuals or teams to their full potential for the benefit of the organization.

Multinational Company

A corporation that operates and has assets in more than one country, allowing it to produce and sell goods in various markets.