The Fed Can Regularly Influence and Change the Risk-Free Rate

question 141

Multiple Choice

The Fed can regularly influence and change the risk-free rate of financial investments through its

• A)open-market operations.
• B)quantitative easing.
• C)required reserve ratio.
• D)bank supervision.

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Definitions:

Pus

A dense, green or yellow liquid found in diseased tissue, made up of deceased white blood cells, bacteria, and tissue remains.

Ossicles

Small bones in the middle ear that transmit sound vibrations from the eardrum to the inner ear.

Stirrup

A bone in the middle ear that transmits sound vibrations to the inner ear.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves, also known as the tympanic membrane.