If the Fed Is Trying to Peg the Interest Rate

question 9

Multiple Choice

If the Fed is trying to peg the interest rate, it

• A)needs to sell government securities whenever interest rates go up
• B)needs to tie the discount rate to the three-month Treasury-bill rate
• C)loses control over money supply
• D)needs to restrict money supply whenever interest rates increase
• E)none of the above

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Definitions:

Genetic Drift

A mechanism of evolution that causes random changes in the frequency of alleles in a population over time.

Gene Flow

The transfer of genetic variation from one population to another, which can lead to changes in the gene pools of both populations.

Sickle-Cell Anemia

A genetic blood disorder characterized by red blood cells that assume a sickle shape, leading to various complications such as pain, infections, and anemia.

Oxygen-Carrying

Refers to the capability of certain molecules, such as hemoglobin in red blood cells, to transport oxygen from the lungs to various parts of the body.