Which of the Following Correctly Describes What the Fed Used

question 39

Multiple Choice

Which of the following correctly describes what the Fed used as monetary targets in the past?

• A)The Fed used M1 and M2 as targets after 1993.
• B)The Fed focused on M1 as a target after deregulation of the financial markets.
• C)The Fed increased its reliance on interest rate targets since the mid-1990s.
• D)After 1980 and before the 1990s,the Fed focused on interest rate targets.

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Definitions:

Standard of Value

A recognized measure that people use to set prices and make economic evaluations, such as a currency.

Finance Companies

Businesses that offer short-term loans at substantially higher rates of interest than banks.