The Basic Policy Instruments That the Fed Uses to Execute

question 86

Multiple Choice

The basic policy instruments that the Fed uses to execute monetary policy include all of the following EXCEPT

• A)changing reserve requirements
• B)changing the discount rate
• C)conducting closed market operations
• D)all of the above are monetary policy instruments

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Definitions:

Unearned Rent

Unearned rent is money received by a landlord for rent that has not yet been earned because the rental period has not occurred. It is recorded as a liability until the period passes.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period.

Depreciation Expense

A technique for spreading out the expense of a physical asset throughout its lifespan.

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as buildings, machinery, and equipment.