The Main Tools That the Fed Can Use to Alter

question 26

Multiple Choice

The main tools that the Fed can use to alter the reserves of commercial banks are the required-reserve ratio and the following, except:

• A) Exchange rate
• B) Discount rate
• C) Interest on reserves
• D) Open market operations

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Definitions:

Amyotrophic Lateral Sclerosis

A progressive neurodegenerative disease that affects nerve cells in the brain and the spinal cord, leading to muscle weakness and atrophy.

Guillain-Barré Syndrome

A rare neurological disorder where the body's immune system mistakenly attacks part of its peripheral nervous system, often leading to weakness and tingling in the extremities initially.

Stroke

A condition that occurs when the blood supply to the brain is impaired. It may cause temporary or permanent damage.

Stroke

A medical condition caused by the interruption of blood supply to a part of the brain, leading to a rapid loss of brain function.