The Tool Most Frequently Relied on by the Fed Is

question 174

Multiple Choice

The tool most frequently relied on by the Fed is

• A)interest rate changes.
• B)changing the money multiplier.
• C)changing the discount rate.
• D)open-market operations.
• E)changing the reserve ratio.

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Definitions:

Market Failure

A scenario where goods and services are distributed in a way that isn't optimal, frequently resulting in a reduction of overall societal well-being.

Property Rights

Legal rights to possess, use, and dispose of assets including real property and intellectual property.

Conserve

To protect from harm or destruction, especially regarding natural resources or the environment, through careful management.

Resource

Resources, items, or components utilized in creating products and offering services.