The Fed's Primary Tools of Monetary Policy Include All the Following

question 70

Multiple Choice

The Fed's primary tools of monetary policy include all the following except

• A) changing the discount rate.
• B) open market operations.
• C) adjusting reserve requirements.
• D) changes in the Federal Funds rate.

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Definitions:

Money

A medium of exchange that enables people and businesses to buy goods and services; recognized by a society to have value for transactions.

Annuity Due

A series of equal payments made at the beginning of consecutive periods over a fixed length of time.

Payments

Payments refer to the transfer of money from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Perpetuity

A type of annuity that pays an infinite series of equal payments, with no end.