What activity does the Fed undertake when it carries out open-market operations?
a. It buys and sells the bonds, but not the notes, of leading U.S. corporations.
b. It changes the legal reserve requirements for member banks.
c. It changes the discount rate, which generally increases the amount of available credit.
d. It provides funds so that healthy depository institutions can purchase weaker ones on the open market.
e. It deals in the purchase and sale of U.S. government securities.
Question 2
Charlston, a newly industrialized country, has a female population of 2.8 million. There are 1.08 million employed males in the country, while the number of dependent males is equal to 1.52 million. The GDP of Charlston is U.S. 298 billion. The output per capita of Charlston is approximately equal to _____.
a. 275,925
b. 55,185
c. 196,035
d. 275,955
e. 79,810
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