The Four Main Policy Tools the Federal Reserve System Uses

question 19

Multiple Choice

The four main policy tools the Federal Reserve System uses to influence the interest rate are setting

• A) the prime rate, open market operations, crisis management and setting the excess reserve ratio.
• B) quantitative easing, market interest rate and the discount rate, as well as open market operations.
• C) the discount rate, open market operations, crisis measures and setting the required reserve ratio.
• D) credit easing, the discount rate, setting tax rates, and setting the required reserve ratio.
• E) quantitative easing, open market operations, setting tax rates, and setting the required reserve ratio.

Recognize the importance of preventive services and the disadvantages of seeking routine care at emergency departments.

Understand the importance and basics of ISO 9000 standards in the global business context.

Identify the key aspects and benefits of quality control in business operations.

Recognize the principles and benefits of continuous improvement strategies in organizations.

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Definitions:

Hypomanic

A mood state characterized by persistently elevated, expansive, or irritable mood, but less severe than full-blown mania, often seen in bipolar disorder.

Mania

A bipolar mood disorder characterized by flamboyance and expansiveness. A person experiencing a manic episode may go on shopping sprees, engage in sexually promiscuous behaviour, take on numerous, unrealistic work commitments, brag, and dominate others socially. In general, the person shows intolerance when the world does not cooperate with his or her momentary needs. Extreme or prolonged cases of mania are considered bona fide psychotic states, implying that the person is experiencing a break with reality. From the Greek mainomai, “to be mad.” See also hypomania.

Depression

A mental health disorder that is marked by persistent feelings of sadness, apathy, and loss of interest, significantly affecting daily functioning.