The Fed's Primary Tool to Change the Money Supply Is

question 298

Multiple Choice

The Fed's primary tool to change the money supply is

• A) changing the discount rate.
• B) changing the reserve requirement.
• C) conducting open market operations.
• D) redeeming Federal Reserve notes.

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Definitions:

Paid-In Capital

Funds raised by a company through the sale of its own shares.

Dividends In Arrears

Dividends on preferred stock that have not been paid by the declaration date but are still owed to shareholders.

Non-Cumulative

Pertaining to preferred stock, which does not accumulate unpaid dividends if they are not declared.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with fixed dividends.