Which of the Following Policy Tools Does the Fed Use

question 86

Multiple Choice

Which of the following policy tools does the Fed use most frequently?

• A)Open market operations
• B)Reserve requirement
• C)Margin requirements
• D)The discount rate

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Definitions:

Treasury Bills

Treasury bills are short-term government securities with maturities ranging from a few days to 52 weeks, sold at a discount from their face value.

Collection Time

The average period it takes for a company to receive payments owed by its customers after a sale has been made.

BAT Model

The BAT model is a term used in various contexts, including finance for "Behavioral Analysis Training," but if referring specifically to a financial model, clarification is needed as it may not apply. Without a specific context, providing an accurate definition is challenging.

Miller-Orr Model

is a financial management strategy designed to optimize cash balances by setting upper and lower limits on cash reserves.