Which Tool Can the Federal Reserve Use to Control the Money

question 248

Multiple Choice

Which tool can the Federal Reserve use to control the money supply?

• A) open market operations
• B) the Term Auction Facility
• C) paying interest on reserves
• D) open market operations,the Term Auction Facility,and paying interest on reserves

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Definitions:

Tardive Dyskinesia

A neurological syndrome characterized by repetitive, involuntary movements, often as a side effect of long-term use of antipsychotic medications.

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Medications designed to reduce symptoms of anxiety, often acting on the central nervous system to promote relaxation or reduce nervous tension.

Xanax

A prescription medication, generically known as alprazolam, used to treat anxiety and panic disorders.

Ativan

A medication primarily used to treat anxiety disorders, known generically as lorazepam.