The Three Primary Means That the Fed Can Use to Exercise

question 9

True/False

The three primary means that the Fed can use to exercise monetary policy includes closed market operations, stabilizing reserve requirements, and freeing the Federal discount rate.

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Definitions:

Cognitive Model

A theory in psychology that emphasizes the importance of internal thoughts and perceptions in determining behavior.

Abnormal Behavior

Patterns of emotion, thought, and action deemed pathological for one or more reasons, including discomfort, dysfunction, distress, or deviation from the norm.

Conscious Mental Processes

Thoughts, perceptions, and feelings of which an individual is aware at any given moment.

Biological Model

A perspective in psychology and medicine that attributes psychological disorders and behaviors to biological factors, such as genetic inheritance, brain chemistry, and anatomy.