The Fed's Initial Step in Pursuing Restrictive Monetary Policy Using

question 304

Multiple Choice

The Fed's initial step in pursuing restrictive monetary policy using the federal funds rate is to

• A)announce a higher target.
• B)sell bonds to banks and the public.
• C)raise the discount rate.
• D)raise the prime interest rate.

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Definitions:

Rate Of Exchange

The value of one currency for the purpose of conversion to another; it's how much of one currency can be exchanged for another currency.

British Pounds

The official currency of the United Kingdom, a major global currency used for various transactions and reserves.

Current Account Deficit

A situation in which a country's total imports of goods, services, and transfers are greater than the country's total export.

Dutch Tourists

Refers specifically to travelers from the Netherlands who visit other countries for leisure, business, or other purposes.