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:

Standard Errors

Measures of the variability or spread of a sample statistic distribution if the experiment were to be repeated many times.

Control Limits

The boundaries in statistical process control that indicate the acceptable range of process variation.

Sample Mean

The average of a sample set of numbers, calculated as the sum of all the observed values divided by the number of observations.

Trend

The prevailing trend or the way in which something is evolving or transforming with the passage of time.