The Fed's Control of the Money Supply Is Not Precise

question 36

Multiple Choice

The Fed's control of the money supply is not precise because

• A)Congress can also make changes to the money supply.
• B)there are not always government bonds available for purchase when the Fed wants to perform open-market operations.
• C)the Fed does not know where all U.S.currency is located.
• D)the amount of money in the economy depends in part on the behavior of depositors and bankers.

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Definitions:

Sensory Memory

The shortest-term element of memory, which is the ability to retain impressions of sensory information after the original stimuli have ended.

Long-Term Memory

The aspect of memory where information is stored for a lengthy period, ranging from several minutes to a lifetime.

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period.

Working Memory

A cognitive system responsible for temporarily holding information available for processing tasks such as reasoning, learning, and comprehension.