Which of the Following Statement Is Most True Regarding Monetary

question 110

Multiple Choice

Which of the following statement is most true regarding monetary policy tools?

• A)The required reserve rate is the most easily observable tool
• B)The central banks cannot set a quantity and a price tool simultaneously
• C)The federal funds rate is not the best tool because it fails the controllable test of a good monetary policy tool
• D)The Fed currently uses a quantity tool for monetary policy

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Definitions:

Ammonia

Strong-smelling inhalants used to revive a person who has fainted; also known as ammonia inhalants or spirits of ammonia.

Emergency Medical Services (EMS)

A group that provides out-of-hospital acute medical care and/or transport to definitive care to patients experiencing a medical emergency.

Consciousness

Awareness, full knowledge of what is in one’s own mind.

Chronic

Continuing a long time, recurring; not acute.