Question: Which of the following open market operations are defensive and which are dynamic?

1. The Treasury makes a large payment, which the Fed offsets with an open market purchase.
2. The economy strengthens unexpectedly, to which the Fed responds with open market sales.
3. Bad weather prevents checks from being cleared as quickly as usual, allowing float to increase in the banking system; The Fed responds with open market sales.
4. The dollars foreign exchange value declines, prompting the Fed to respond with open market sales.

Price: $2.99

Solution: The downloadable solution consists of 1 pages
Deliverable: Word Document