What Happens When the Fed Aims to Change Interest Rates

question 107

Multiple Choice

What happens when the Fed aims to change interest rates?

• A) It asks Congress to legislate new interest rates.
• B) It buys or sells government bonds on the open market to achieve the desired rate.
• C) It buys or sells dollars on the foreign exchange market to achieve the desired rate.
• D) It announces a new discount interest rate.

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Definitions:

Patella

A small circular bone located in the front of the knee joint, also known as the kneecap, which protects the knee and connects to the quadriceps and patellar tendons.

Tibial Tuberosity

A prominent bump on the top front part of the tibia, below the knee, where the patellar ligament attaches.

Greater Trochanter

A prominent bony projection on the femur bone's upper part, serving as a major site for muscle attachment.

Deltoid Tuberosity

A protrusion on the shaft of the humerus where the deltoid muscle attaches, crucial for arm movement and stabilization.