At the Time of Its Founding, Which Tool Was Thought

question 30

Multiple Choice

At the time of its founding, which tool was thought to be the most useful for the Fed?

• A)changing the reserve requirement 
• B)altering deposit interest rates 
• C)lending to banks 
• D)open market operations

---

Definitions:

Command Economies

Economic systems where the government controls the production, distribution, and consumption of goods and services.

Positive Statement

An objective statement based on fact that can be tested and validated, often used in the description of economic behaviors.

Economic Policy

Strategies and actions taken by the government or regulatory bodies to influence the economy, including fiscal, monetary, and trade policies.

Societal Goal

A long-term objective that benefits the larger community, aiming at improvements in social well-being, economic prosperity, and environmental sustainability.