If the Fed Wants a Tighter Monetary Policy, It Might

question 169

Multiple Choice

If the Fed wants a tighter monetary policy, it might:

• A)sell government securities to increase the federal funds rate.
• B)sell government securities to reduce the federal funds rate.
• C)buy government securities to increase the federal funds rate.
• D)buy government securities to reduce the federal funds rate.

---

Definitions:

Electric Charge

A physical property of matter that causes it to experience a force when placed in an electromagnetic field.

Nucleus

The central and most important part of an atom, or a cell's organelle that contains genetic material.

Abundant Elements

Chemical elements that occur in large quantities in the Earth's atmosphere, crust, or oceans, or in the universe at large.

Human Body

The entire structure of a human being encompassing physical, biological, and chemical processes that work together to maintain life.