Which Monetary Policy Tool Does the Fed Use Most Infrequently

question 50

Multiple Choice

Which monetary policy tool does the Fed use most infrequently?

• A)changing reserve requirements
• B)changing the discount rate
• C)open market operations
• D)none of the above

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Definitions:

Local Governments

Administrative bodies that manage and govern specific areas or regions within a country, providing public services and infrastructure.

Surplus

A situation in which the quantity of goods or services supplied exceeds the quantity demanded at the current price.

Tax Revenue

The money that is amassed by governments as a result of taxation.

State Income Tax

A tax imposed by a state on the income of its residents and on income earned within the state by nonresidents.