If the Fed Wants to Lower the Federal Funds Rate

question 146

Multiple Choice

If the Fed wants to lower the federal funds rate, it can

• A) decrease the budget deficit.
• B) sell government securities in the open market.
• C) instruct banks to print more money.
• D) buy government securities on the open market.

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Definitions:

Competitive Advantage

The attribute that allows an organization to outperform its competitors, resulting in greater sales or margins and/or retaining more customers.

Cash Flow

Refers to the total amount of money being transferred into and out of a business, especially as affecting liquidity.

Applicant's Character

The assessment of an individual's moral and ethical qualities, often evaluated during the hiring or loan application processes.

Lender

An individual, institution, or entity that provides funds to another with the expectation that the funds will be repaid, typically with interest.