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:

Progressive Agenda

A set of policy proposals or political objectives aiming to promote social advancement, economic equality, and environmental sustainability, often associated with liberal or left-leaning political movements.

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Antitrust Prosecutions involve legal actions taken against companies or organizations accused of violating antitrust laws, which are designed to prevent anti-competitive practices and promote market fairness.

Interstate Commerce Commission

The first federal agency created in 1887, tasked with regulating the railroads to ensure fair rates, eliminate rate discrimination, and regulate other aspects of common carriers.

William Howard Taft

The 27th President of the United States (1909-1913) known for his conservative policies; later served as the 10th Chief Justice of the United States, making him the only person to have held both offices.