The Basic Policy Instruments That the Fed Uses to Execute

question 55

Multiple Choice

The basic policy instruments that the Fed uses to execute monetary policy include all of the following except

• A) changing reserve requirements.
• B) changing the lending/discount rate.
• C) conducting closed market operations.
• D) conducting open market operations.

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Definitions:

Self-efficacy

An individual's belief in their own ability to succeed in specific situations or accomplish a task, which can play a major role in how goals, tasks, and challenges are approached.

Social Cognitive Theory

A theory in psychology that states behavior is learned from the environment through the process of observational learning and social interaction.

Behavioral Perspectives

A viewpoint in psychology that emphasizes the importance of observing and understanding how behavior is influenced by the environment and internal mental states.

Moderately Consistent

Describes a level of regularity and predictability in behavior or phenomena that is neither high nor low but within a middle range.