Which of the Following Tools Is Used Most Often by the Fed

question 60

Multiple Choice

Which of the following tools is used most often by the Fed to change the supply of money?

• A) Open market operations
• B) Reserve requirement
• C) Discount window
• D) Interest rate

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Definitions:

Frequency Distributions

An arrangement of data that outlines the number of times each unique value or range of values appears.

Normal Distributions

A symmetrical, bell-shaped distribution of data in which most of the data points cluster around a central peak and the probabilities for values further away from the mean taper off equally in both directions.

Mathematical Formulas

A concise way of expressing information symbolically, as in a mathematical or chemical formula.

Frequency Distributions

A way to organize data that shows how often each value occurs.