Which of the Following Policies Could the Fed Use to Lower

question 142

Multiple Choice

Which of the following policies could the Fed use to lower the interest rate?

• A) A tax cut.
• B) Selling government securities.
• C) Raising the discount rate.
• D) Reducing the required reserve ratio.

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Definitions:

Consideration

An essential element in contract law, referring to something of value exchanged between parties.

Fraudulently Misrepresented

The act of deliberately providing false or misleading information with the intent to deceive in a contractual agreement.

Disaffirm

The legal right of a minor or other parties to void or cancel certain types of contracts, to protect against exploitation.

Mental Condition

A state or situation concerning the psychological or psychiatric state of an individual, which can affect their thinking, behavior, and interaction with others.