Which Action Is the Federal Reserve MOST Likely to Take

question 12

Multiple Choice

Which action is the Federal Reserve MOST likely to take to curb inflation?

• A) lower the discount rate
• B) lower reserve requirements
• C) raise taxes
• D) sell securities in the open market

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Definitions:

Diffuses

The process by which molecules move from an area of higher concentration to an area of lower concentration, a fundamental mechanism in both biological and chemical phenomena.

Endocytosis

A cellular process where a cell engulfs solid particles or liquids into a pouch which then becomes a vesicle.

Exocytosis

A cellular process in which intracellular vesicles fuse with the plasma membrane to release their contents outside the cell.

Adhesion Junctions

Specialized structures in cells that help in the binding of cells with each other or with the extracellular matrix.