Which of the Following Is a Tool the Fed Uses

question 249

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 banks charge for loans to their prime 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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Definitions:

Treated Differently

A reference to instances where individuals or groups receive distinct treatment or consideration based on specific criteria.

Opening Offers

The initial proposals or terms put forward by parties at the beginning of a negotiation process.

Negotiation Tactic

A negotiation tactic is a specific technique used by a negotiator to influence the negotiation process and steer it toward a favorable outcome.

Negotiating Table

A metaphorical or physical location where parties come together to discuss and resolve conflicts or reach deals.