The Four Main Policy Tools the Federal Reserve System Uses

question 269

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,extraordinary 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,extraordinary 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.

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Definitions:

Self-Help Groups

Peer-led groups where members support each other in solving personal problems or improving their situation.

Mutual Support

The act of providing reciprocal emotional, social, or practical help to each other in a group or between individuals.

Common Problem

An issue or challenge that is frequently encountered by a considerable number of people.

Specific Phobia

An intense, irrational fear of, or aversion to, specific objects or situations.