Which of the Below Statements Is FALSE

question 40

Multiple Choice

Which of the below statements is FALSE?

• A) The Fed can affect the rate of growth in the money supply by various means besides its control of reserves in the banking system.
• B) A problem in the implementation of monetary policy is that the Fed has no direct control over the goals that are the final objectives of its policies.
• C) The growth in the money supply depends to a substantial extent on the preferences, actions, and expectations of numerous banks, borrowers, and consumers.
• D) The Fed uses one or more of its tools to affect what are called operating targets, which are monetary and financial variables whose changes tend to bring about changes in intermediate targets.

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Definitions:

Tie-Breaking Votes

Refers to votes cast by an additional member, like the Vice President in the US Senate, to break a tie in a decision-making process.

Council of Economic Advisers

A team of economists selected by the U.S. President to offer unbiased economic evaluations and counsel on various domestic and international economic policy matters' development and execution.

Economic Trends

Patterns, changes, and movements in the economy over time, including growth rates, inflation, and employment levels.

Economic Events

Incidents or developments in the economic sector that can have significant impacts on financial markets, businesses, and consumer confidence.