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<span>Households buy financial assets such as stocks and bonds. The purchase of stocks and bonds are considered loans and not goods or other services. Newly produced capital is a good thing for the economy. However, the initial purchase of a financial asset is not.</span>
This answer is FALSE - FUN FACT - Liquidity of money refers to the ease with which the owner of an asset can convert it into cash it is easier to convert common stocks into cash rather than attempt to raise cash from sale or mortgage of real estate assets
The maximum possible change in the money supply would be $1,000.
<h3>An open market notion is what?</h3>
A system of commerce that is open to free-market activity has few to no restrictions on it. An open market is one that doesn't have any tariffs, taxes, licensing requirements, subsidies, unionization, or other rules or behaviors that obstruct the operation of the free market.
<h3>What do open market operations aim to achieve?</h3>
The goal of open market operations is to alter the reserve balances of American banks and trigger retaliatory changes to the current interest rates. The Fed can boost the amount of money in the country by purchasing securities.
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