The Primary Tool the Fed Uses to Control the Money

question 137

Multiple Choice

The primary tool the Fed uses to control the money supply today is:

• A)the discount rate.
• B)the required reserve ratio.
• C)the discount window.
• D)chartering.
• E)open market operations.

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Definitions:

Flow Measure

A term used in economics to describe a quantity measured over a specified period of time, such as income per month or spending per year.

Quantity Demanded

The total number of units of a product or service that purchasers are eager and capable of procuring at a designated price level.

Hard Drives

Storage devices used in computers and servers to store data persistently.

Laptop Computers

Portable personal computers designed for mobile use and small enough to sit on one's lap while in use.