The most important tool the Fed uses to conduct monetary policy is open market operations (OMOs), a tool controlled by the Federal Open Market Committee (FOMC). A. Explain what OMOs are. (2 points)
B. Explain how OMOs affect the money supply. (4 points)
C. What type of OMO is consistent with expansionary policy? With contractionary policy? (2 points)
D. Show the effects of OMOs on graphs of money and bond markets to establish the relationship between interest rates and bond prices. (6 points)

The a/p clerk of a company writes the checks for vendors, and the controller signs the checks. the a/p clerk hasdevised a plan to give herself a raise. she creates a new vendor for her friend's business and creates two purchaseorders for random car detailing services for $75 and $70. she writes the checks to pay these new vendors knowing thecontroller will only pay close attention to checks over $100. she delivers the checks to her friend to deposit in his bankaccount, and then he writes her a personal check for the full amount of $145.ceventually, what will be the effect of her actions? what can the company do to prevent this type of behavior? due mondav