Although the Federal Open Market Committee Does Not Have Formal

question 41

Multiple Choice

Although the Federal Open Market Committee does not have formal authority to set ________ and the ________,it does possess the authority in practice.

• A) margin requirements; discount rate
• B) margin requirements; federal funds rate
• C) reserve requirements; discount rate
• D) reserve requirements; federal funds rate

---

Definitions:

Arteries

Blood vessels that carry oxygen-rich blood away from the heart to all parts of the body.

Oxygenated Blood

Blood that has been enriched with oxygen in the lungs and is transported via arteries from the heart to supply the tissues of the body.

Arterioles

Small branches of arteries that lead to capillaries, playing a crucial role in regulating blood pressure and flow.

Muscular Layer

A layer of tissue composed of muscle fibers that can contract, found in various organs and structures in the body.