2014, Question 2 · 6 points
Open market operations and the discount rate
Pick the open market operation that lowers the federal funds rate and its effect on bond prices, show it on a money market graph, decide how a bond purchase from banks changes required reserves, and define the discount rate.
This exam had three free-response questions in a 10 minute planning period plus 50 minutes of writing, with a suggestion to spend about half the time on Question 1 and split the rest evenly between Questions 2 and 3. The current exam has 3 free-response questions in 60 minutes. The skills these questions practice still count.
Lessons this question draws on
1 Read the question
The question is College Board's, from the 2014 exam. It starts on page 3 of the PDF. College Board no longer posts this exam, so it opens from the copy of College Board's PDF that the Internet Archive saved on June 12, 2024.
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Scoring guidelines (PDF, page 4) What the exam readers saw (Student Performance Q&A)
Question, scoring guidelines and Chief Reader report: College Board, from the Internet Archive. The title, summary are ours.