Tight Monetary Policy Refers to the Federal Reserve

question 139

Multiple Choice

Tight monetary policy refers to the Federal Reserve

• A) raising interest rates, usually to fight inflation.
• B) buying bonds to pull reserves from the banking system.
• C) increasing excess reserves to bring the economy to full employment.
• D) selling bonds to bring the economy to full employment.

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Definitions:

Vitamin

Organic substance that is essential for normal body growth and maintenance and resistance to infection.

Closing Entries

At the close of an accounting period, recordings are made to move balances from temporary accounts to those that are permanent.

Adjustment Columns

Special columns found in accounting ledgers and worksheets used for making necessary modifications to accounts at the end of a reporting period.

Depreciation Expense

The cost allocated over the useful life of a tangible asset to account for its decline in value due to use and time.