When the Fed Wants to Signal the Public About the Direction

question 23

Multiple Choice

When the Fed wants to signal the public about the direction of monetary policy,it will likely use

• A)a change in the discount rate.
• B)open market operations.
• C)a change in the reserve requirement.
• D)a public announcement about a change in the targeted federal funds rate.
• E) all of the above

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Definitions:

OTC Market

The Over-the-Counter (OTC) market refers to decentralized trading of securities, such as stocks and bonds, not conducted on a formal exchange.

TSX

Stands for the Toronto Stock Exchange, which is the largest stock exchange in Canada and the third largest in North America.

NYSE

The New York Stock Exchange, one of the largest equity markets in the world, where public corporations list their shares for trading by investors, providing a platform for buying and selling equity securities.

TSX

Toronto Stock Exchange, the largest stock exchange in Canada and the third largest in North America by market capitalization.