Which of the Following Tools Is NOT a Policy Tool

question 367

Multiple Choice

Which of the following tools is NOT a policy tool of the Fed?

• A) the reserve ratio
• B) last resort loans
• C) open market operations
• D) the tax rate on interest income

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Definitions:

Financing Activities

Transactions and events where cash is raised or repaid to fund the company’s operations or to acquire assets, typically reflected in the financing section of a cash flow statement.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Income Statement

A financial statement that reports a company's revenues, expenses, and net income over a specific period, indicating financial performance.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.