When the Fed Takes Action to Change Nominal Interest Rates

question 127

Multiple Choice

When the Fed takes action to change nominal interest rates, it does so by

• A)buying and selling bonds.
• B)mandating that banks change the prime rate.
• C)recommending that the president change the interest rate.
• D)recommending that Congress change the interest rate.
• E)increasing the required reserve ratio.

---

Definitions:

Statute Of Limitations

A law prescribing the maximum period during which legal action can be taken in a certain type of case.

Ulcerative Colitis

A chronic inflammatory bowel disease that causes long-lasting inflammation and ulcers in the digestive tract, primarily affecting the colon and rectum.

Irritable Bowel Syndrome

A common disorder affecting the large intestine, causing symptoms like cramping, abdominal pain, bloating, gas, and diarrhea or constipation.

Accutane

A brand name for isotretinoin, a powerful drug used in the treatment of severe acne.