The Fed's Most Important and Most Frequently Used Tool of Monetary

question 131

Multiple Choice

The Fed's most important and most frequently used tool of monetary policy is

• A) moral suasion.
• B) open-market operations.
• C) changes in the discount rate.
• D) changes in required reserve ratios.

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Definitions:

Political Manoeuvring

The strategic and often subtle actions taken within organizational or governmental contexts to gain advantage, influence decisions, or achieve specific outcomes.

Direct Forcing

A strategy where one party uses their power or authority to achieve their desired outcome without seeking compromise.

Planned Organisational Change

A process designed intentionally to make operational, structural, or cultural adjustments in an organization to improve efficiency or adapt to new market demands.