When the Fed Is Worried That the Economy Is Heading

question 63

Multiple Choice

When the Fed is worried that the economy is heading into a recession, it

• A)decreases bank reserves.
• B)buys government bonds.
• C)orders all banks to decrease interest rates.
• D)recommends that Congress lower the federal funds rate.
• E)recommends that Congress conduct open market operations.

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Definitions:

Chattel Mortgage

A legal arrangement where personal property is used as security for a loan, but the borrower maintains possession of the property while repaying the loan.

Principal Differences

Fundamental disagreements or conflicting main ideas, often found in negotiations, viewpoints, or interpretations.

Debenture

A type of debt instrument unsecured by collateral, relying on the creditworthiness and reputation of the issuer for security.

Chattel Mortgage

A loan agreement where personal movable property is used as collateral for the loan.