The Oldest Policy Tool of the Fed Is

question 19

Multiple Choice

The oldest policy tool of the Fed is

• A)open market operations.
• B)reserve requirements.
• C)moral suasion.
• D)discount policy.

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Definitions:

Foot-In-The-Door Technique

A persuasion strategy that involves getting a person to agree to a small request to increase the likelihood of agreeing to a larger request later.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Social Identity

The portion of an individual's self-concept derived from perceived membership in a relevant social group, such as a national, religious, or occupational group.

Feigned Scarcity

A tactic wherein a sense of scarcity is artificially created to increase demand or perceived value.