When the Fed Takes Action to Change Nominal Interest Rates

question 127

Multiple Choice

When the Fed takes action to change nominal interest rates, it does so by

• A)buying and selling bonds.
• B)mandating that banks change the prime rate.
• C)recommending that the president change the interest rate.
• D)recommending that Congress change the interest rate.
• E)increasing the required reserve ratio.

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Definitions:

Receptive Layer

A term that might refer to a layer within a biological or synthetic system that is capable of receiving stimuli or signals.

Presbyopia

A common age-related condition where the eye's lens loses its ability to focus properly, leading to difficulty in reading or seeing objects up close.

Floaters

Visual phenomena where small spots or threads appear to float across one's field of vision, typically due to age-related changes in the eye's vitreous humor.

Vitreous Fibers

Vitreous fibers are small, fibrous materials, often used in insulation, that can be hazardous to the lungs if inhaled.