Which of the Following Is the Primary Tool the Fed

question 151

Multiple Choice

Which of the following is the primary tool the Fed uses to control the supply of money?

• A)the discount rate
• B)the reserve requirements
• C)open market operations
• D)the 30-year home-mortgage interest rate

Understand how accounts receivable management theories support credit decisions.

Evaluate credit terms and discounts and their financial implications.

Analyze the risk and return of extending credit to new and existing customers.

Identify the carrying costs associated with granting credit.

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Definitions:

Unconditioned Response (UR)

In classical conditioning, the unlearned, naturally occurring response to the unconditioned stimulus (US), such as salivation when food is in the mouth.

Taste-Aversion Learning

A form of learning in which an organism learns to avoid a food or flavor that's associated with a negative reaction, such as nausea or vomiting.

Unconditioned Stimulus (US)

An innate trigger that elicits a natural, unlearned response in an organism.

Aversion

A strong dislike or disinclination towards something.