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Question Completion Status: QUESTION 17 Which of the following is true of open-market operations? It involves the purchase an

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17)

Answer: ( A)

Open market operation means, buying and selling of government securities in the open market. it is the most critical tool of monetary policy.

18)

Answer: (B)

Currency and coins are the most liquid assets.

19)

Answer: ( D)

it is the rate at which Fed lends to member banks. it is a tool of monetary policy but it is a less frequently used tool.

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