The Fed Can Use All of the Following Except ________

question 128

Multiple Choice

The Fed can use all of the following except ________ to change the lending capacity of the banking system.

• A)the reserve requirement
• B)the excess reserve requirement
• C)open market operations
• D)the discount rate

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Definitions:

Criterion-related Validity

The extent to which a test predicts or significantly correlates with a specific outcome or behavior.

Construct Validity

The extent to which a test measures what it claims to measure, indicating the accuracy of the test's theoretical foundations.

Criterion-related Validity

The degree to which a test predicts or correlates with a specific outcome or behavior it is designed to assess.

Stress Response

The stress response is the body's reaction to perceived threats or challenges, involving physiological and psychological changes to prepare for fight or flight.