The Main Tool That the Federal Reserve Uses to Conduct

question 235

Multiple Choice

The main tool that the Federal Reserve uses to conduct monetary policy is

• A)open market operations.
• B)discount policy.
• C)setting reserve requirements.
• D)acting as the lender of last resort.
• E)check clearing.

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Definitions:

CD-Rom Drives

Hardware devices used for reading data stored on CD-ROMs, typically used for distributing software and storing media in the past.

Tariffs

Taxes on imports or exports between sovereign states, used to control trade, raise government revenue, or protect domestic industries.

United States

A country located in North America, consisting of 50 states and a federal district, known for its large economy and diverse population.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared and capable of buying at a specified price.