Which of the Monetary Policy Tools Can Alter Both the Level

question 116

Multiple Choice

Which of the monetary policy tools can alter both the level of excess reserves and the money multiplier?

• A) open-market operations
• B) the reserve ratio
• C) the discount rate
• D) the federal funds rate

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Definitions:

Wage

The fixed regular payment made by an employer to an employee, typically expressed on an hourly, daily, or piecework basis.

Bonus

An additional payment or reward given to employees or organizations, often as an incentive or reward for performance.

Management By Objectives (MBO)

Systematic approach that allows managers to focus on attainable goals and to achieve the best results based on the organization’s resources.

Performance Evaluation

The systematic assessment of an employee's job performance, skills, and productivity, typically for the purpose of decisions about promotions, compensation, and development.