The Fed's Control of the Money Supply Is Not Precise

question 36

Multiple Choice

The Fed's control of the money supply is not precise because

• A)Congress can also make changes to the money supply.
• B)there are not always government bonds available for purchase when the Fed wants to perform open-market operations.
• C)the Fed does not know where all U.S.currency is located.
• D)the amount of money in the economy depends in part on the behavior of depositors and bankers.

---

Definitions:

n Ach

A term referring to the need for achievement, a motivational drive to accomplish goals and succeed.

Ring Toss Game

A game where players throw rings from a distance, aiming to land them around pegs or within targets for points.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.

Inborn Potential

The inherent capacity or natural ability present from birth that can develop into talents or skills with encouragement and practice.