One of the Tools of Monetary Policy Is to Change

question 238

Multiple Choice

One of the tools of monetary policy is to change the discount rate. Since 2003

• A) the Fed has not changed the discount rate.
• B) the Fed has pegged the discount rate to the reserve requirement.
• C) the Fed has kept the discount rate a fixed amount above the federal funds rate.
• D) the Fed has kept the federal funds rate one percentage point above the discount rate.

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Definitions:

Flexible Budget

A budget that adjusts or changes based on the actual activity level or volume of work done, allowing for better control and planning.

Units

Basic measures of quantity or amount in specific contexts, such as inventory units in manufacturing or business.

Medical Supplies

Items used in the medical field for treatment, diagnosis, or preventive care, including bandages, syringes, and diagnostic kits.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity.