If the Fed Wanted to Use All Four of Its

question 105

Multiple Choice

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

• A) buy bonds, reduce the discount rate, reduce reserve requirements, and reduce the interest rate paid on excess reserves.
• B) sell bonds, reduce the discount rate, reduce reserve requirements, and reduce the interest rate paid on excess reserves.
• C) sell bonds, increase the discount rate, increase reserve requirements, and increase the interest rate paid on excess reserves.
• D) buy bonds, increase the discount rate, increase reserve requirements, and increase the interest rate paid on excess reserves.

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Definitions:

Treatment Mandate

A requirement, often by law or policy, that an individual undergo a specific form of treatment or intervention, usually within the healthcare or criminal justice system.

Female Perpetrators

Women who commit acts of violence, abuse, or other offenses against individuals or groups.

Child Sexual Abuse

Engaging in a sexual act with a minor who is unable to give or has not given their consent.

Caregivers

Individuals who provide care for others, especially those who are ill, elderly, or disabled, often without compensation.