Discount Rate Policy Is Most Often

question 143

Multiple Choice

Discount rate policy is most often

• A)lowered when market rates rise.
• B)used to actively control the money supply.
• C)the Fed's primary tool of monetary control.
• D)passively changed by the Fed to follow market rates.

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Definitions:

Sample Size

The number of observations or data points used in a statistical analysis.

Confidence Interval

A range of values, derived from the sample data, that is believed, with a certain probability, to contain the true population parameter.

Population Mean

The average of all the individuals or items in a population, calculated as the sum divided by the total number in the population.

Degrees Of Freedom

The number of independent values or quantities which can vary in the analysis without violating any constraints.