Which of the Following Statements Is True

question 264

Multiple Choice

Which of the following statements is true?

• A) The Federal Reserve sets the federal funds rate.
• B) The Federal Reserve sets the target for the federal funds rate, and then uses the reserve ratio to push banks toward that target.
• C) The Federal Reserve does not set the federal funds rate, but historically has influenced it using its open-market operations.
• D) The Federal Reserve will set a higher target for the federal funds rate if pursuing an expansionary monetary policy.

---

Definitions:

Policy Manuals

Documents that outline the protocols, rules, and guidelines to be followed within an organization.

Operations Manuals

Comprehensive documents that provide detailed instructions on how to perform operations or tasks within an organization effectively.

Memorandums

Written communications used within an organization to convey information, directives, or official policies.

Effective Supervisors

Individuals in managerial positions who possess the skills and attributes necessary to lead, guide, and support their teams efficiently.