All of the Following Are Tools Used by the Fed

question 51

Multiple Choice

All of the following are tools used by the Fed for setting monetary policy EXCEPT

• A) lowering the reserve requirement.
• B) authorizing a government spending sequester.
• C) lowering the discount rate.
• D) selling Treasury Securities to decrease the money supply.
• E) raising the reserve requirement and raising the discount rate.

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Definitions:

Democracy

A form of government in which power is vested in the hands of the people, either directly or through elected representatives.

Montgomery Bus Boycott

Sparked by Rosa Parks’s arrest on December 1, 1955, for refusing to surrender her seat to a white passenger, a successful yearlong boycott protesting segregation on city buses; led by the Reverend Martin Luther King Jr.

Desegregating

The act of eliminating racial segregation, or the separation of different racial groups, in institutions or society.