The Primary Tool the Fed Uses to Control the Money

question 137

Multiple Choice

The primary tool the Fed uses to control the money supply today is:

• A)the discount rate.
• B)the required reserve ratio.
• C)the discount window.
• D)chartering.
• E)open market operations.

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Definitions:

Standard Deviation

A statistical measurement that quantifies the dispersion or spread of a set of data points around their mean.

Normal Probability Distribution

A bell-shaped curve distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

Discrete Probability Distributions

Probability distributions that deal with variables that have distinct, separate values.

Normally Distributed

A type of continuous probability distribution for a real-valued random variable where the data are symmetrically distributed around the mean, forming a bell-shaped curve.