Which of the Following Is a Tool Used by the Fed

question 101

Multiple Choice

Which of the following is a tool used by the Fed in the conduct of monetary policy?

• A) changes in the prime rate
• B) issuing new government bonds and retiring old ones
• C) buying and selling corporate bonds
• D) buying and selling federal government bonds

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Definitions:

Quart

A unit of liquid volume measurement in the United States, equal to two pints or one-fourth of a gallon.

Cups

Small, open container used for drinking liquids, coming in various materials like glass, plastic, or metal.

Equation

A mathematical statement that asserts the equality of two expressions, often containing one or more variables.

Multiplying

The process of increasing in number or quantity, often used in the context of cells dividing or investment growth.