The Fed, at the End of 2015, Announced Its Intent

question 84

Multiple Choice

The Fed, at the end of 2015, announced its intent to start "normalizing" monetary policy and returning short-term interest rates to their normal range of 3 percent or higher.Its normalization plan had two major tools,

• A)taxation and spending.
• B)discount rate and reserve requirements.
• C)quantitative easing and open-market operations.
• D)paying interest on excess reserves held at Fed banks and reverse repos.

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Definitions:

System Variable

An element or feature within a system that can change and affect the system's operation or outcome.

Lineup Procedure

A process in law enforcement where witnesses to a crime are asked to identify a suspect from a group of people.

Perpetrator Absent Warning

A caution or alert given when the individual who committed a wrong or crime is not currently present or has not been identified.

Mistaken Identifications

Refers to incorrectly identifying a person or object as being the same as another person or object.