Because the Fed Controls the Amount of Required Reserve Assets

question 84

Multiple Choice

Because the Fed controls the amount of required reserve assets that depository institutions must hold, it also operates a lending facility called the

• A)fair lending window.
• B)discount window.
• C)open market window.
• D)stabilization window.

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Definitions:

Invoice

Bill for goods or services provided by the seller to the purchaser.

Bill

A short-term debt instrument issued by a government as a means of borrowing money with a maturity of less than a year.

Goods

Physical items that are produced, bought, or sold with the aim to satisfy the wants or needs of consumers.

Services

Actions or activities provided to satisfy the needs and wants of consumers without resulting in the ownership of a tangible product.