When the Fed Wants to Raise Nominal Interest Rates, It

question 15

Multiple Choice

When the Fed wants to raise nominal interest rates, it

• A)increases bank reserves.
• B)orders all banks to increase interest rates.
• C)recommends that Congress raise the federal funds rate.
• D)recommends that Congress conduct open market operations.
• E)sells government bonds.

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience, often within a specific context or hierarchy.

Personal Values

Fundamental values or ethics that steer a person's actions and choices.

Dominant-Submissive

A social interaction dynamic where one individual exercises control or influence over another, who adopts a yielding or subordinate position.

Active-Passive

A contrast between taking initiative and being reactive or inert in a situation.