Which of the Following Is NOT One of the Fedʹs

question 130

Multiple Choice

Which of the following is NOT one of the Fedʹs monetary policy tools?

• A) last resort loans
• B) buying and selling U.S. government securities
• C) the income tax rate
• D) the required reserve ratio

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Definitions:

Controlling Company

A business entity that holds a significant amount of voting stock in another company, giving it control over its operations and policies.

Loss on Sale

The financial loss incurred from selling an asset for less than its carrying amount on the books.

Brokerage Fee

A fee charged by a broker for executing transactions or providing specialized services.

Common Stock

A type of equity security that represents ownership in a corporation and entitles its holders to a claim on part of the company’s assets and earnings.