The Most Important Advantage of Discount Policy Is That the Fed

question 30

Multiple Choice

The most important advantage of discount policy is that the Fed can use it to

• A)precisely control the monetary base.
• B)perform its role as lender of last resort.
• C)control the money supply.
• D)punish banks that have deficient reserves.

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Definitions:

Productivity

The measure of efficiency in which goods and services are produced, often assessed through output per unit of input (like labor, time, or cost).

Unconscious Mind

The part of the mind that is not in current awareness but influences thoughts, feelings, actions, and behaviors without one's conscious realization.

Psychoanalysis

Sigmund Freud’s method for delving into the unconscious mind to better understand a person’s motives and needs.

Motives

Internal states that direct behavior towards specific goals or objectives.