Which of the Following Is NOT a Policy Tool of the Federal

question 203

Multiple Choice

Which of the following is NOT a policy tool of the Federal Reserve System?

• A) the amount of required reserves held by member banks
• B) the interest rate charged by the Fed for loans to member banks
• C) open market operations
• D) the tax rate imposed on interest income

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Definitions:

Susceptibility

The likelihood or tendency to be influenced or harmed by a particular thing or condition.

Motion Sickness

A condition in which the conflict between visually perceived movement and the vestibular system's sense of movement causes nausea, dizziness, and other symptoms.

Vestibular Senses

The sense responsible for providing the brain with information about motion, head position, and spatial orientation; it also helps with balance and maintaining posture.

Orientation

The awareness of one's self in relation to time, place, and identity, often used as a measure of one's mental state.