The Fed's Monetary Policy Tools

question 28

Multiple Choice

The Fed's monetary policy tools

• A)have proven to be of little value in helping the Fed to achieve its monetary policy goals.
• B)have allowed the Fed to achieve its monetary policy goals directly.
• C)have allowed the Fed to achieve its monetary policy goals indirectly.
• D)are no longer as effective in achieving its monetary policy goals, due to restrictive legislation passed by Congress in the 1990s.

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Definitions:

Homosexual

Pertaining to sexual attraction or sexual activity between members of the same sex or gender.

Large Percentage

Referring to a substantial portion or share of a total amount.

Small Percentage

A minor part or fraction of a whole, usually denoted as less significant in quantity or magnitude.

Avoid

To keep away from or stop oneself from doing something; often a behavior motivated by fear, dislike, or desire to prevent something.