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All of the Following Statements About Open Market Operations Are

Question 49

Multiple Choice

All of the following statements about open market operations are true EXCEPT:


A) They are used by the Federal Reserve to change the Federal Funds Rate
B) They are used by the Federal Reserve to change the discount rate
C) They are used by the Federal Reserve to buy and sell mutual funds
D) They are used by the Federal Reserve to transact with securities dealers
E) They are probably the most influential tool the Federal Reserve has to alter money supply

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