The Federal Reserve Has the Power to Directly Increase or Restrict

question 77

Multiple Choice

The Federal Reserve has the power to directly increase or restrict the amount of money available to consumers to spend or invest through:

• A) open-market operations, whereby the Fed buys and sells government securities.
• B) federal funds adjustment, which involves interest rates charged by one bank to another.
• C) adjustment of the reserve requirement, which is the amount of cash and securities that every bank must have available.
• D) the discount rate, which is the interest it charges on the loans it extends to member banks.

---

Definitions:

Evolutionary Theory

A scientific theory that explains the diversity of life through the process of natural selection, where organisms that are better suited to their environment survive and reproduce.

Color Vision

The ability of the eyes to distinguish different wavelengths of light, enabling us to see a spectrum of colors.

Christine Ladd-Franklin

An American psychologist and logician known for her work in psychology of vision and color theory, as well as being one of the first women to make significant contributions to the field of psychology.

Unconscious Mind

Part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.