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:

Security Registration Legislation

Laws and regulations tasked with governing the registration, offering, and sale of securities to protect investors and prevent fraud.

Automobile

A wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor.

Loan

A sum of money borrowed that is expected to be paid back with interest.

Provincial Personal Property

Assets or belongings that are considered movable and are within the jurisdiction of a specific province or region.