Which of the Following Statements Is True

question 126

Multiple Choice

Which of the following statements is true?

• A) The Federal Reserve sets the federal funds rate.
• B) The Federal Reserve sets the target for the federal funds rate,and then uses the reserve ratio to push banks toward that target.
• C) The Federal Reserve does not set the federal funds rate,but it influences it through the use of its open-market operations.
• D) The Federal Reserve will set a higher target for the federal funds rate if pursuing an expansionary monetary policy.

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Definitions:

Economic Status

A measure of an individual's or group's financial health and stability, often determined by income, wealth, and access to resources.

Ratification

The official approval or formal adoption of a treaty, agreement, or legislative act through a vote or other consenting mechanism.

Constitutional Convention

The gathering that took place in 1787, in Philadelphia, to draft the United States Constitution, replacing the Articles of Confederation.

Ben Franklin

Benjamin Franklin was one of the Founding Fathers of the United States, known for his contributions as an inventor, scientist, diplomat, and philosopher, as well as for his pivotal role in the American Revolution and the drafting of the U.S. Constitution.