The Fed, at the End of 2015, Announced Its Intent

question 200

Multiple Choice

The Fed, at the end of 2015, announced its intent to start "normalizing" monetary policy and returning short-term interest rates to their normal range. Its normalization plan had two major tools,

• A) taxation and spending.
• B) discount rate and reserve requirements.
• C) quantitative easing and open-market operations.
• D) raising the interest on excess reserves held at Fed banks and quantitative tightening.

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Definitions:

Self-Confidence

The belief in one's abilities, qualities, and judgment.

Individual Traits

Refers to the personal characteristics and qualities that differentiate one person from another.

Uncompensated Work Time

Periods during which an employee or worker is engaged in job-related activities without receiving financial compensation.

Power and Prestige

A term denoting the influence, authority, and high social status that individuals or groups may hold in society.