The Primary Tool the Fed Uses to Control the Money

question 45

Multiple Choice

The primary tool the Fed uses to control the money supply today is _____

• A) the discount rate.
• B) the required reserve ratio.
• C) the federal funds rate.
• D) chartering.
• E) open-market operations.

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Definitions:

Primary Demand

The demand for a product category as a whole, rather than for a specific brand within that category.

"Get Cracking"

An idiomatic expression encouraging someone to start or speed up their work.

Egg Farmers

Individuals or enterprises engaged in the business of producing and selling eggs for consumption.

Product Class

A category of goods or services that share similar characteristics, uses, or are targeted towards similar markets.