Which Is NOT Used by the Fed to Control the Money

question 251

Multiple Choice

Which is NOT used by the Fed to control the money supply?

• A) open market operations
• B) discount rate lending
• C) paying an interest rate on bank reserves held at the Fed
• D) prime interest rate lending

---

Definitions:

Logarithm

The exponent or power to which a base must be raised to yield a given number.

Inverse Function

A function that undoes the action of the another function, such that if the original function applied to an input gives an output, the inverse function applied to that output returns the original input.

Graph

A visual representation of data or mathematical functions, typically displayed as points, lines, or areas on a two-dimensional surface.

Inverse Function

A function that reverses the operation of another function, meaning if one function takes an input to an output, the inverse function takes that output back to the original input.