A Requirement of a Good Operating Target Is That the Fed

question 13

Multiple Choice

A requirement of a good operating target is that the Fed can exert substantial control over its level and changes. If the rate were to rise above the level that the Fed thought conducive to economic growth and high employment, the Fed would ________.

• A) engage in open market purchases and not inject reserves into the banking system.
• B) engage in open market purchases and inject reserves into the banking system.
• C) not engage in open market purchases but would inject reserves into the banking system.
• D) neither engage in open market purchases nor inject reserves into the banking system.

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Definitions:

Sustainable Change

Change within an organization or society that is maintainable over the long term without harmful effects on people or the environment.

Valuing Diversity

The recognition and appreciation of differences in individuals, such as cultural, racial, gender, and age differences, contributing to a more inclusive and effective environment.

Organizational Culture

The shared values, beliefs, and norms that influence the way employees think, feel, and behave within an organization.

Top-Down Change

involves organizational change initiatives that originate from upper management and are implemented down through the hierarchy of the organization.