TallS 25. Open Market Operations generally means: a. Raising or lowering the discount rate charge by the Federal Reserve b. Raising or lowering the reserve requirement set by the Federal Reserve c. Marking-to-market Treasury securities held by the Federal Reserve d. Buying and selling government securities through the trading-desk 26. The sale of Treasury securities by the Fed to banks: a. Decreases the amount of funds available for banks to lend b. Puts downward pressure on short-term interest rates c. Is only allowed if the growth in GDP is negative d. Increases the ability of banks to make loans and create new deposits 27. The maturity risk premium suggests that long-term bonds are riskier than short-term bonds. What type of risk is increased specifically? a. Default risk b. Interest rate risk c. Call risk d. Currency risk 28. The voting members of the FOMC consist of: a. The Board of Governors plus the POTUS b. The Board of Governors plus the presidents of the 12 Fed district banks c. The Board of Governors plus the presidents of 5 Fed district banks d. The Board of Governors plus the Federal Advisory Council 29. A contracted money supply is intended to economic growth in the near term and should the inflation rate in the long-run a. Stimulate; place downward pressure on b. Stimulate; place upward pressure on c. Dampen; place upward pressure on d. Dampen place downward pressure on 30. Which of the following is a money market security? a. Commercial paper b. Treasury bond c. Mortgage-back security d. Common stock