One of the Tools Used by the Federal Reserve to Influence

question 7

Multiple Choice

One of the tools used by the Federal Reserve to influence the economy is

• A) Changing the discount rate of interest
• B) Limiting a bank's authority to accept deposits
• C) Changing the prime rate of interest
• D) Encouraging competition with non-bank banks

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Definitions:

Wilhelm Wundt

A German psychologist who is considered the father of experimental psychology; he founded the first psychological laboratory.

Practice Observations

The act of repeatedly watching or monitoring phenomena to gain expertise or collect data in a particular field.

American Psychologist

A professional title for psychologists in the United States, often associated with the publication of the American Psychological Association.

Wilhelm Wundt

A German psychologist who is widely regarded as the father of experimental psychology, having established the first psychology laboratory in 1879.