Selling government bonds through open market operations allows the Federal Reserve to:
A. decrease money in the Treasury.
B. decrease the money supply in the private sector.
C. receive discounts on future sales.
D. receive a high rate of interest on the bonds.
Answer: B
You might also like to view...
Which of the following statements is NOT true of consumer finance companies?
A) Their borrowers have higher default risk than bank customers. B) They charge higher interest rates than banks do on similar loans. C) They lend primarily to consumers. D) They are strictly regulated by state governments.
The expected value of a random variable is:
a. the measure of its variability. b. the most likely outcome. c. the outcome that will occur on average. d. the relative frequency of a realization.
Bonds that are rated in the D category are of higher quality than bonds that are rated in the A category
Indicate whether the statement is true or false
Empirical studies suggest that when a large number of firms are present in a market, prices are usually ________ and profits are usually ________ than when there are only a few firms in a market.
A. lower; higher B. lower; lower C. higher; higher D. higher; lower