Which of the Fed's Instruments Is Most Frequently Used

question 121

Multiple Choice

Which of the Fed's instruments is most frequently used?

• A)Changing reserve requirements
• B)Open-market operations
• C)Changing the discount rate
• D)Changing margin requirements for the stock market

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Definitions:

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures, indicating the ability to repay creditors or pay dividends and interest to investors.

Accounts Payable Balance

The total amount of money owed by a company to suppliers for goods and services purchased on credit.

Payments To Suppliers

Money transferred to suppliers for goods or services received.

Direct Method

A cash flow statement presentation method that lists major classes of gross cash receipts and payments.