Which Action by the Federal Reserve Is NOT Considered to Be

question 317

Multiple Choice

Which action by the Federal Reserve is NOT considered to be one of its normal monetary policy tools?

• A) buying Treasury securities
• B) lowering the federal funds rate
• C) making loans to banks at the discount rate
• D) buying mortgage-backed securities

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Definitions:

Membership

generally refers to being a part of or belonging to a group, organization, or community, often with specific rights, duties, or benefits.

Underwater

Located or occurring beneath the surface of the water; can also metaphorically refer to being overwhelmed, as in debt or pressure.

Mortgage

A loan specifically used for the purchase of real estate, where the property itself serves as collateral for the loan.

Mortgaged Property

Real estate that is secured by a mortgage loan, meaning the lender has the right to seize the property if the borrower fails to make payments.