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

question 437

Multiple Choice

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

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

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Definitions:

Resting Tremor

An involuntary, rhythmic muscle contraction occurring when a part of the body is at rest, often associated with Parkinson's disease.

Involuntary Movements

Movements that occur without conscious control, often as a result of neurological disorders.

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems involved in muscle activation, memory, and learning.

Neurotransmitter

Chemical with an excitatory or inhibitory effect when released by a neuron onto a target.