1.The term open market operations refers to the
A. loan-making activities by banks with households and businesses.
B. banks borrowing money from each other.
C. the buying and selling of U.S Treasury securities by the U.S. Treasury Department.
D. none of the answer choices A→C are correct.
2.A bank finds itself short of required reserves and decides to borrow from the Federal Reserve. The interest rate on this loan is called:
A. the real interest rate.
B. the discount rate.
C. the federal funds rate.
D. the nominal interest rate
Explain why you picked that answer