The Federal Reserve System Cannot Directly Control

question 74

Multiple Choice

The Federal Reserve System cannot directly control

• A) Treasury security purchases by the public.
• B) monetary base.
• C) the size of the money supply.
• D) commercial bank reserve requirements.

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Definitions:

Coupon Bond

A type of bond that pays the holder a fixed interest payment (coupon) at regular intervals until maturity.

Interest Basis

A method used to calculate interest payments, based on how the interest accrues over time.

Par Value

The face value of a bond or stock, representing the amount returned to the holder at maturity.

Common Stock

Equity ownership in a corporation, granting voting rights and a share in profits through dividends.