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:

Tetraethylammonium (TEA)

Tetraethylammonium (TEA) is a chemical compound known to block potassium channels in cells, used in research to understand ion channel functions and in studying neural and muscular activity.

Potassium Channels

Protein-based pathways located in cell membranes that allow potassium ions to flow in and out of cells, playing a critical role in maintaining the cell's electrical charge and signaling.

Sodium Channels

Protein channels in cell membranes that allow sodium ions to pass into or out of a cell, critical for generating and transmitting electrical signals in tissues like nerves and muscles.

Voltage-Activated

Referring to ion channels or processes within cells that are triggered or changed by alterations in electrical membrane potential.