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Which of the Following Statements Is Correct

Question 52

Multiple Choice

Which of the following statements is correct?


A) The volume of open market operations is determined jointly by the actions of the Fed, the banking system, and the nonbank public.
B) The Fed's control over discount lending is more complete than its control over open market operations.
C) The Fed completely controls the volume of open market operations.
D) The Fed has complete control over the volume of both discount loans and open market operations.

Correct Answer:

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