What Is the Main Policy Tool Available to the Federal

question 70

Multiple Choice

What is the main policy tool available to the Federal Reserve?

• A) the discount rate
• B) the federal funds rate
• C) government expenditures
• D) printing money
• E) taxes

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Definitions:

Bank Reconciliation

The process of comparing and adjusting the balance shown in an organization's bank statement, with the balance shown in its own financial records.

Deposits In Transit

Funds that have been deposited in a bank account but not yet recorded by the bank in the account balance, often due to timing differences.

NSF Check

A check that cannot be processed due to insufficient funds in the account it's drawn against, leading to a "non-sufficient funds" status.

Petty Cash Fund

A small amount of cash kept on hand for minor, immediate expenses.