The Fed Tends Not to Use Discount Policy as Its

question 34

Multiple Choice

The Fed tends not to use discount policy as its principal tool in influencing the money supply since

• A)discount loans do not affect the money supply.
• B)it does not have as much control over discount loans as it has on open market operations.
• C)it is prohibited from doing so by an act of Congress.
• D)it prefers to use reserve requirements.

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Definitions:

Thoracic Aorta

The section of the aorta that passes through the thoracic cavity, supplying oxygen-rich blood to the chest and upper abdominal area.

Thoracic Organs

Thoracic organs refer to those housed in the thoracic cavity, including the heart, lungs, esophagus, and major blood vessels.

Posterior Tibial Artery

A major artery of the lower leg, supplying blood to the posterior compartment of the leg and plantar surface of the foot.

Popliteal Artery

The main artery located behind the knee, providing blood supply to the knee joint and surrounding regions.