In Practice, the Primary Tool Used by the Federal Reserve

question 67

Multiple Choice

In practice, the primary tool used by the Federal Reserve to control the money supply is

• A) discount lending.
• B) the reserve requirement.
• C) open market operations.
• D) buying commercial paper.

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Definitions:

Word Pairs

is a cognitive task involving the linking of two words together, often used to test memory or associative learning.

Recall

The act of retrieving information or memory from the past, which can vary in effort depending on how the information was encoded and stored.

Decay

The process of gradual deterioration or the breakdown of organic matter resulting from natural physical or chemical processes.

Memories Traces

Theoretical constructs representing the physical and psychological evidence of memories stored in the brain.