The Federal Reserve Cannot Target Both the Money Supply and the Interest

question 107

Multiple Choice

The Federal Reserve cannot target both the money supply and the interest rate because it does not control

• A)bank reserves.
• B)money demand.
• C)the discount rate.
• D)open market operations.

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Definitions:

Buccinators

The buccinator muscles are thin, flat muscles of the cheeks, involved in blowing, sucking actions, and aiding in mastication by pressing the cheeks against the teeth.

Platysma

A thin, superficial muscle located in the neck, responsible for lowering the jaw and drawing the lower lip and corners of the mouth down.

Temporoparietalis

A muscle located in the region of the temporal and parietal bones, involved in moving the scalp and ear.

Occipitofrontal Muscle

A muscle located on the forehead, involved in raising the eyebrows and wrinkling the forehead skin.