Which of the following is an example of an open market operation?
A) The Fed reducing the discount window for banks.
B) The Fed imposing selective credit controls.
C) The Fed buying Treasury bonds.
D) The Fed increasing the discount rate for banks.
E) The Fed increasing the reserve requirement on deposits.
Answer: C
Explanation: Fed buys and sells Treasury bonds, bills, and notes to increase or decrease the money supply. Because these transactions take place on the open market, they are known as open-market operations.
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You own a neighborhood grocery store and would like to have non-food items delivered, priced, displayed and inventoried by a wholesaler. You do not want to purchase title to the goods. Which type of wholesaler best fits your needs?
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