The Primary Policy Instrument of the Federal Open Market Committee

question 44

Multiple Choice

The primary policy instrument of the Federal Open Market Committee (FOMC) is:

• A)The required reserve rate
• B)The discount rate
• C)The target federal funds rate
• D)The exchange rate

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Definitions:

Bind

To secure or tie something tightly or to stick together; in computing, it can refer to the practice of linking or establishing a connection between two pieces or elements.

CD4+ Count

A measure of the number of CD4+ T lymphocytes in the blood, an important indicator of immune function in individuals, particularly in the context of HIV/AIDS.

AIDS

Acquired Immune Deficiency Syndrome, a chronic, potentially life-threatening condition caused by the human immunodeficiency virus (HIV).

Final Stage

The last phase in a process or condition, often indicating the ultimate progression or conclusion of something.