An open market operation is? ______.
A. the purchase or sale of U.S. dollars in the foreign exchange market by the Federal Reserve System
B. the depositing of U.S. dollars in commercial banks by the Federal Reserve System
C. the purchase or sale of government securities by the Federal Reserve System in the open market
D. any transaction conducted by the Federal Reserve System in a transparent and open manner
Answer: C. the purchase or sale of government securities by the Federal Reserve System in the open market
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The Federal Reserve banks are owned by: a. the citizens of each Federal Reserve district. b. the American people as a whole
c. the Federal Government. d. commercial banks.
Central planners in command economies
a. generally set production targets for firms. b. always consult consumers on the output of goods they want to consume. c. allow prices to organize the economy's production. d. depend upon the invisible hand to coordinate economic activities.