The Tools of Conducting Monetary Policy Include

question 34

Multiple Choice

The tools of conducting monetary policy include:

• A)changes in the required reserve requirement.
• B)changes in the prime rate.
• C)open market purchases of corporate stock.
• D)changes in tax rates.

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Definitions:

Sodium-Potassium Pump

A membrane-bound ATPase enzyme that pumps sodium out of cells while moving potassium into cells, crucial for maintaining cellular ion balance and membrane potential.

Plasma Membrane

A bi-layer of lipids and proteins that surrounds a cell, controlling the passage of substances in and out of the cell.

Membrane Potential

The electrical potential difference across a cell's plasma membrane, vital for the conduction of nerve impulses, muscle contraction, and transport processes.

Depolarization

A decrease in membrane potential that makes the interior of a cell less negative compared to the outside, crucial for nerve impulse transmission and muscle contractions.