The Most Commonly Used Tool by the Federal Reserve to Control

question 18

Multiple Choice

The most commonly used tool by the Federal Reserve to control the monetary base is

• A)changes in the discount rate.
• B)changes in tax rates on commercial banks.
• C)changes in legal required reserve ratios.
• D)open market operations.

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Definitions:

Glacier Evidence

Physical features left in the landscape that indicate past or present presence of glaciers, such as moraines, glacial valleys, and striations.

Arête

A sharp, narrow ridge found in glaciated or high mountain terrain, formed by the erosion of two glaciers from opposite sides.

U-Shaped Valley

A valley with a distinct U-shaped cross-section, typically formed by glacial erosion.

Tarn

A small mountain lake or pool, formed in a cirque excavated by a glacier.