Prior to 2008, the Primary Tool Used by the Fed

question 139

Multiple Choice

Prior to 2008, the primary tool used by the Fed to control the money supply was

• A) the manipulation of the required reserve ratio banks must hold against their checking deposits.
• B) the extension of loans to financial institutions.
• C) the buying and selling of stocks and corporate bonds.
• D) the buying and selling of U.S. Treasury securities.

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Definitions:

Defense Responses

Biological processes activated in response to threats like pathogens or physical injury to protect an organism.

Cytokines

Small proteins released by cells that have a specific effect on the interactions and communications between cells, often playing pivotal roles in immune responses.

Prostaglandins

A group of physiologically active lipid compounds that have diverse hormone-like effects in animals, including inducing inflammation and pain.

Complement Proteins

Complement proteins are part of the immune system that enhances the ability of antibodies and phagocytic cells to clear pathogens from an organism.