Compared to the Other Tools the Fed Uses to Change

question 112

Multiple Choice

Compared to the other tools the Fed uses to change the money supply, the discount window is used _______ open market operations and _______ the reserve requirement.

• A) less often than; more often than
• B) more often than; more often than
• C) as often as; more often than
• D) more often than; as often as

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Definitions:

Legally Valid

Meeting all required legal formalities and conditions, thereby enforceable in a court of law.

Unilateral Agreement

A contract where only one party makes a promise to perform without receiving a reciprocal promise from the other party.

Bilateral Agreement

A bilateral agreement is a legally binding contract between two parties, countries, or entities where each agrees to fulfill certain obligations to the benefit of the other.

Express Agreement

A legal contract in which all terms are explicitly stated and agreed upon by all parties involved.