Which of the Following Is a Tool the Fed Uses

question 255

Multiple Choice

Which of the following is a tool the Fed uses to adjust the quantity of money?
i. The Fed can change the interest rate on loans to bank customers.
ii. The Fed can change the discount rate on loans to banks.
iii. The Fed can buy or sell government securities.

• A) i only
• B) ii only
• C) iii only
• D) i and iii
• E) ii and iii

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