Which of the Following Is a Tool of the Federal

question 11

Multiple Choice

Which of the following is a tool of the Federal Reserve System?

• A) Buying or selling stocks of publicly traded corporations in order to stabilize the stock market
• B) Performing open market operations in order to stimulate the economy during recessions and prevent inflation.
• C) Reducing the burden of household debt by capping credit card and other loan interest rates at reasonable levels.
• D) Encouraging employment by lending money at a low ("discount") rate to firms that are in danger of having to make layoffs.

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Definitions:

Humiliated

A feeling of shame or embarrassment often resulting from being made to appear foolish or incompetent.

Specific Phobia

An intense, irrational fear of or aversion to a particular object or situation that poses little to no actual danger but leads to significant avoidance or distress.

Repetitive Behavior

actions that are performed again and again, often without a clear end or goal, which can be a characteristic of certain neurological or developmental disorders.

Learned Associations

Connections developed between stimuli and responses through experience, leading to conditioned reflexes or behaviors.