The Federal Reserve Does Not Target Both the Money Supply

question 155

Multiple Choice

The Federal Reserve does not target both the money supply and an interest rate because

• A)it would be too confusing to Wall Street and would disrupt the financial markets.
• B)it would be too easy for Wall Street to determine what policy the Fed is following and this would destabilize the economy.
• C)it would be illegal according to the Federal Reserve Act.
• D)the Fed cannot achieve a target for both the money supply and an interest rate at the same time.

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Definitions:

Article 2A

pertains to leases of personal property under the Uniform Commercial Code, governing transactions such as rent-to-own agreements.

Personal Property

Movable assets owned by individuals or entities, in contrast to real property like land or buildings.

Consumer Leases

Agreements where a consumer rents or leases goods or services, typically for personal, family, or household purposes.

Article 2A

A section of the Uniform Commercial Code that governs the leasing of personal property, establishing legal standards and protections.