What Activity Does the Fed Undertake When It Carries Out

Multiple Choice

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.