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:

Criminal Violation

An act or omission that goes against the laws set forth in criminal codes, leading to prosecution by governmental authorities.

Tying Arrangements

A situation in sales where the seller requires the buyer to purchase an additional, often unrelated, product or service as a condition of buying the desired product or service.

Per Se Illegal

Actions or agreements that are deemed illegal by their very nature, without the need for a detailed examination of their circumstances or effects.

Antitrust Regulation

Laws implemented to promote fair competition and prevent monopolies within markets.