Which of the Following Tools Is Most Frequently Used by the Fed

question 153

Multiple Choice

Which of the following tools is most frequently used by the Fed to expand and contract the money supply in the economy?

• A) Open market operations
• B) Credit default swaps
• C) Endowment mortgages
• D) Steering taxes

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Definitions:

Pension Benefits

Retirement plan benefits, either in lump sum or recurring payments, provided to employees as part of their compensation package.

Employee Pension Plan

An employee pension plan is a retirement plan funded by an employer that provides a fixed payout to retirees, usually based on factors such as salary history and length of employment.

Vested

Having an absolute right to an asset, benefit, or privilege, which is not contingent upon fulfilling any condition or the occurrence of a specific event.