Prior to 2008, the Primary Tool Used by the Fed

question 139

Multiple Choice

Prior to 2008, the primary tool used by the Fed to control the money supply was

• A) the manipulation of the required reserve ratio banks must hold against their checking deposits.
• B) the extension of loans to financial institutions.
• C) the buying and selling of stocks and corporate bonds.
• D) the buying and selling of U.S. Treasury securities.

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Definitions:

Nonparticipation

Refers to choosing not to take part in social, political, or formal activities or processes.

Voting Process

The procedure by which individuals express their choice or opinion in a democratic system, often through casting a ballot.

Affluent Members

Individuals or groups possessing a significantly higher than average level of wealth, income, or material possessions.

Policy Advocacy

The act of actively promoting and pushing for changes in public policy to address specific issues or causes.