The Fed's Countercyclical Policy Tools to Eliminate a Recession Include

question 97

Multiple Choice

The Fed's countercyclical policy tools to eliminate a recession include lowering:

• A) the discount rate, raising the Fed funds rate, and selling government bonds on the open market.
• B) the required reserve ratio, raising the discount rate, and selling government bonds on the open market.
• C) the required reserve ratio, raising the discount rate, and buying government bonds on the open market.
• D) the required reserve ratio, lowering the discount rate, and buying government bonds on the open market.

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Definitions:

Journalized

The process of recording transactions in a company's journal, marking the first step in the accounting process.

End-Of-Period Spreadsheet

A financial statement prepared at the conclusion of an accounting period, summarizing the income, expenses, and adjustments to accounts.

Retained Earnings

Retained earnings are the portion of a company's net income that is kept within the company instead of being paid out to shareholders as dividends, often used for reinvestment in the business or to pay down debt.

Revenue Accounts

Accounts that track the income generated from the company's primary operations and other activities.