Which of the Following Is an Approach Used by the Fed

question 20

Multiple Choice

Which of the following is an approach used by the Fed to lessen the likelihood of inflation?

• A)Lower the reserve requirement for banks so they can loan out more money.
• B)Raise the discount rate charged to banks that borrow funds from the Fed.
• C)Buy bonds on the open market to increase the amount of money banks have to lend.
• D)Lower the federal funds rate charged to banks who want to borrow from other banks.

---

Definitions:

Organization Structure

The arranged relationships and relative ranks of parts and positions within an organization, determining how roles, responsibilities, and power are distributed.

Implementing Work Policies

The process of putting into action the rules and guidelines designed to direct and regulate the behavior and decisions of employees at work.

Multiple Linkage Model

A leadership model that proposes leaders influence group performance through specific variables, including task structure and group atmosphere.

Managerial Behavior

The patterns of actions and behaviors exhibited by managers in directing and motivating employees, and in implementing strategies to achieve organizational goals.