The Fed's Monetary Policy Tools

question 28

Multiple Choice

The Fed's monetary policy tools

• A)have proven to be of little value in helping the Fed to achieve its monetary policy goals.
• B)have allowed the Fed to achieve its monetary policy goals directly.
• C)have allowed the Fed to achieve its monetary policy goals indirectly.
• D)are no longer as effective in achieving its monetary policy goals, due to restrictive legislation passed by Congress in the 1990s.

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Definitions:

Human Needs

Fundamental requirements necessary for individuals to live healthy and well-being lives, including physical, social, and psychological aspects.

Satisfied Need

A psychological or physiological requirement that has been fulfilled, reducing motivation to seek further fulfillment of that same need.

Motivator

Factors or influences that induce individuals to behave in a certain manner or pursue particular goals.

Belonging Needs

Psychological requirements for human well-being emphasizing the importance of interpersonal connections and being part of a group or community.