The Tool the Fed Uses Most Often to Implement Monetary

question 33

Multiple Choice

The tool the Fed uses most often to implement monetary policy is

• A)control of the discount rate.
• B)moral suasion.
• C)control of required reserves.
• D)control of member banks' credit standings.
• E)open market operations.

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Definitions:

Agent

An individual authorized to act on behalf of another, often in business or legal matters.

Manifestations

Observable expressions or indications of a condition, disease, or the existence of a particular fact.

Reliance

Trust or dependence on something or someone, often used in legal contexts to refer to actions taken based on promises or agreements.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, if such acts occur within the scope of the employment or agency.