Which of the Following Is the Primary Tool the Fed

question 151

Multiple Choice

Which of the following is the primary tool the Fed uses to control the supply of money?

• A)the discount rate
• B)the reserve requirements
• C)open market operations
• D)the 30-year home-mortgage interest rate

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Definitions:

Challenge

A task or situation that requires a person to engage in effortful behavior to achieve a specific objective or overcome an obstacle.

Gordon Allport

An influential psychologist known for his theories on personality and for being one of the founders of personality psychology.

Traits

Enduring characteristics or behaviors that differentiate individuals from one another, often considered stable and part of one’s personality.

Brain

The complex central organ of the nervous system responsible for thought, memory, emotion, touch, motor skills, vision, breathing, temperature, hunger, and every process that regulates our body.