List the Fed's Main Policy Tools and Briefly Explain Each

question 15

Essay

List the Fed's main policy tools and briefly explain each one.

Grasp the concept of opportunity cost in decision-making processes.

Distinguish between private and common ownership and its implications on care and conservation of resources.

Appreciate the role of technology and efficient communication in reducing transaction costs and enabling greater volumes of trade.

Understand the economic rationale for specialization and comparative advantage in producing goods and services.

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Definitions:

Chit Fund

A type of rotating savings and credit association system practiced in India, where a group of people contribute to a common fund and bid to use the accumulated sum.

Corporate Social Responsibility

A business model that involves practices that benefit society and the environment beyond what is legally required.

Legal Guidelines

Standards and rules established by legislation that guide behavior and business practices.

Discretionary Responsibilities

Responsibilities that allow individuals or managers to make decisions based on their judgment and assessment of a situation.