What Is the Most Direct Method the Fed Uses to Change

question 67

Multiple Choice

What is the most direct method the Fed uses to change the monetary base?

• A) open market operations
• B) changing the required reserve ratio
• C) changing the federal funds rate
• D) changing the level of discount loans

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Definitions:

Consideration Failure

An oversight or neglect in thoroughly thinking through or regarding all aspects and consequences of a decision or action.

Encoding Failure

The inability to create a memory link because the information was not attended to or analyzed deeply enough.

Proactive Interference

The tendency for earlier learned material to interfere with the retention of new information.

Decay

The process of decline or deterioration over time, used in various contexts such as physical, biological, or psychological.