The Federal Reserve Board Has the Power to

question 80

Multiple Choice

The Federal Reserve Board has the power to

• A) increase or decrease the interest rate it charges on the loans it extends to member banks.
• B) buy and sell government securities in order to increase or decrease the supply of money in the economy.
• C) manipulate the interest rate charged by one bank to another on loans in the federal funds market.
• D) All of these are correct.

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Definitions:

Artificial Veins

Synthetically made veins used to replace or bypass damaged or diseased veins, commonly applied in medical procedures to restore normal blood flow.

Dialysis

Removal of the products of urine from the blood by passage of the solutes through a membrane.

Cystitis

An inflammation of the bladder, often caused by a bacterial infection, leading to symptoms such as frequent urination and pain.