Federal Reserve Policy Tools Include All of the Following EXCEPT

question 566

Multiple Choice

Federal Reserve policy tools include all of the following EXCEPT

• A) excess reserve ratios.
• B) required reserve ratios.
• C) last resort loans.
• D) open market operations.

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Definitions:

Demand

The quantity of a product or service that consumers are willing and able to buy at a given price over a specified period of time.

Price

The expenditure needed to secure a product, service, or piece of property.

Price-discriminating Monopolist

A monopolist that sells the same product at different prices to different groups of consumers, usually to maximize profits by capturing consumer surplus.

Market

A place or mechanism through which buyers and sellers interact to trade goods, services, or assets, facilitating the determination of prices and the exchange of ownership.