Which of the Following Is Not a Tool Used by the Fed

question 11

Multiple Choice

Which of the following is not a tool used by the Fed to implement its monetary policy?

• A) Open market operations
• B) Reserve requirements
• C) Credit controls
• D) Discount rate
• E) Individual savings accounts

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Definitions:

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to an organization or society.

Production Possibilities

The various combinations of goods and services that can be produced within an economy given available resources and technology.

Circular-Flow Diagram

A visual model of the economy that illustrates the exchanges between households and firms through markets for products and resources.

Economy

A system of production, distribution, and consumption of goods and services in a particular geographic region.