The U.S.Fed "Sets" Interest Rates by

question 19

Multiple Choice

The U.S.Fed "sets" interest rates by

• A)announcing a desired discount rate and then attempting to keep the federal funds rate two percentage points above it
• B)announcing a desired monetary growth rate designed to keep inflation stable
• C)buying or selling Treasury bills
• D)announcing its intentions far in advance since transparency allows financial markets to adjust before any action is taken
• E)trying to keep bank reserves stable

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Definitions:

Fluorescence

The emission of light by a substance that has absorbed light or other electromagnetic radiation, occurring in various natural and artificial processes.

Venography

An imaging technique used to visualize veins filled with an injectable contrast medium, often used to diagnose blood clots.

Thermography

A process of recording the heat patterns and temperatures of objects, often used in medical diagnosis and building inspections.

Radio Waves

Electromagnetic waves with wavelengths longer than infrared light, used in communication technologies.