Which of the Following Are Policy Tools Used by the Federal

question 274

Multiple Choice

Which of the following are policy tools used by the Federal Reserve?
I.the federal personal income tax
Ii.open market operations
Iii.changing the required reserve ratio

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

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Definitions:

Financial Support

Monetary assistance provided to individuals or organizations to help cover costs or fund activities.

ESOP

Employee Stock Ownership Plan, a program that provides a company's workforce with an ownership interest in the company, usually in the form of stock shares.

Senior Debt Financing

A type of debt that has priority over other unsecured or otherwise more junior debt owed by the issuer in terms of repayment in the event of a sale or bankruptcy.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and gives shareholders voting rights and a dividend.