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Which of the Following Is (Are) a Tool(s) of Monetary

question 28

Multiple Choice

Which of the following is (are) a tool(s) of monetary policy used by the Federal Reserve?
I. tax rates
II. government purchases of goods and services


Definitions:

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a relatively safe investment.

Vault Cash

Paper currency and coins held by a bank in its vault and used to satisfy demands for withdrawals or to resolve deficits in reserve accounts.

Federal Securities

Financial instruments issued by the federal government, such as treasury bills and bonds, used to raise funds for governmental expenditures.

Common Stock

Common stock is a type of security that represents ownership in a corporation, with holders typically having voting rights and potential dividends.

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