Which Tool Does the Fed Use Most Commonly to Control

question 10

Multiple Choice

Which tool does the Fed use most commonly to control the money supply?

• A) changing the discount rate
• B) changing the reserve requirement
• C) open market operations
• D) none of the above

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Definitions:

Nativist

A perspective in the field of linguistics and cognitive science which suggests that the ability to acquire language is innate to humans and genetically predetermined.

Cognitive

Relating to cognition, which involves processes such as thinking, knowing, remembering, judging, and problem-solving.

Biological Mechanism

The means or process through which functions are carried out within a living organism, often at the cellular or molecular level.

Noam Chomsky

An influential linguist and cognitive scientist known for his theory of generative grammar, significantly impacting the study of language and the mind.