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:

Evolutionary Theorists

Scholars and scientists who study how evolutionary theory, which posits that species change over time due to natural selection and genetic variation, applies to various phenomena.

Natural Selection

A process in biology where organisms with traits that better enable them to adapt to their environment have a greater chance of surviving and reproducing.

Social Coalitions

Alliances or partnerships formed between individuals or groups to achieve common goals or interests.

Functional Fixedness

Functional fixedness is a cognitive bias that limits a person to using an object only in the way it is traditionally used.