The Fed's Countercyclical Policy Tools to Eliminate a Recession Include

question 37

Multiple Choice

The Fed's countercyclical policy tools to eliminate a recession include lowering:

• A) the required reserve ratio, cutting the discount rate, and selling government bonds on the open market.
• B) the required reserve ratio, raising the discount rate, and selling government bonds on the open market.
• C) the required reserve ratio, raising the discount rate, and buying government bonds on the open market.
• D) the discount rate, cutting the discount rate, and raising the margin requirement.
• E) the reserve requirement, lowering the discount rate, and buying government bonds on the open market.

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Definitions:

Raffle

A means of raising money by selling numbered tickets, one or more of which are subsequently drawn at random, the holder or holders of such tickets winning a prize.

Probability

A value ranging from 0 to 1 that denotes the probability of an event's occurrence.

Winning

Achieving victory or success in a contest, conflict, or endeavor.

Monthly Rates

The amount or percentage per month used for calculating changes in financial or other measurements.