__________________ Become the Most Important and Effective Means of Monetary

question 155

Multiple Choice

__________________ become the most important and effective means of monetary and credit control.

• A)Changing reserve requirements has
• B)Changing the discount rate has
• C)Open market operations has
• D)Changing the Treasury bill rate has
• E)none of the above

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Definitions:

Compounded Quarterly

The process of calculating and adding interest to the principal sum of an investment or loan on a quarterly basis, thus increasing the amount on which subsequent interest is calculated.

Semiannually Compounded

Interest calculation method where the interest earned is added to the principal twice per year, effectively growing the investment more quickly than simple interest.

Compound Annual

A calculation of the total compound interest earned or payable over a period of one year.

Hourly Wage

The amount of money paid for each hour of work, commonly used in part-time and some full-time employment.