Asked by Jason Fitch on Jun 25, 2024
Verified
Open market operations refer to decisions to:
A) buy or sell U.S.Treasury bills and other investments in the open market.
B) issue savings accounts and certificates of deposit in the open market.
C) regulate and charter credit unions in the open market.
D) set a credit limit for the credit cards.
E) regulate income tax rates for the open market.
Open Market Operations
Decisions to buy or sell U.S. Treasury bills (short-term debt issued by the U.S. government) and other investments in the open market.
- Perceive the role of the Federal Reserve Board in governing the supply of money and its repercussion on the economic environment.
Verified Answer
CP
Cathy PhilipJun 27, 2024
Final Answer :
A
Explanation :
Open market operations involve the buying or selling of U.S. Treasury bills and other securities by a central bank (like the Federal Reserve in the United States) to control the money supply and influence interest rates.
Learning Objectives
- Perceive the role of the Federal Reserve Board in governing the supply of money and its repercussion on the economic environment.
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