The Main Tools That the Fed Can Use to Alter

question 247

Multiple Choice

The main tools that the Fed can use to alter the reserves of commercial banks are the required-reserve ratio and all of the following, except

• A) exchange rates.
• B) the discount rate.
• C) interest on reserves.
• D) open-market operations.

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Definitions:

Raw Sensations

Relates to the basic, immediate experiences that arise from stimuli affecting sensory receptors, before undergoing significant mental processing.

Sense of Smell

A sensory system allowing for the perception of odors through the detection of chemical molecules in the air.

Physical Harm

Injury or damage inflicted on a person's body, potentially resulting in pain or impairment.

Gate-Control Theory

A theory suggesting that the spinal cord contains a neurological "gate" that either blocks or allows pain signals to continue on to the brain.