If the Fed Wanted to Use All Three of Its

question 1

Multiple Choice

If the Fed wanted to use all three of its major monetary control tools to decrease the money supply, it would:

• A) buy bonds, reduce the discount rate, and reduce reserve requirements.
• B) sell bonds, reduce the discount rate, and reduce reserve requirements.
• C) sell bonds, increase the discount rate, and increase reserve requirements.
• D) buy bonds, increase the discount rate, and increase reserve requirements.

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Definitions:

Young-Old

A classification in gerontology referring to older adults typically between the ages of 65 and 74, considered young within the older population.

Old-Old

Adults aged 75 to 84, who typically live independently but often experience some physical and mental impairment.

Olfactory Loss

The partial or complete inability to detect or perceive odors, which can significantly impact taste and quality of life.

Deteriorating Health

A decline in physical or mental health over time, which may result from various factors including aging, disease, or unhealthy lifestyle choices.