The Fed Uses the Term Target When It Announces How

question 202

Multiple Choice

The Fed uses the term target when it announces how it intends to change the federal funds rate because

• A)the change in the interest rate is a new law that all banks must adhere to.
• B)the Fed has no influence over the federal funds rate.
• C)the Fed can control the real interest rate but has no control over the nominal interest rate.
• D)the Fed expects the U.S.Treasury to conform with its monetary policy.
• E)the Fed has no direct control over interest rates and can only influence rates toward a target value.

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Definitions:

Cartilaginous Fish

Cartilaginous fish are a class of fishes that have skeletons made entirely out of cartilage, rather than bone, including sharks, rays, and skates.

Aquatic Environment

An ecosystem located within a body of water, encompassing both freshwater and marine habitats.

Amphibians

A class of cold-blooded vertebrates that can live both in water and on land, such as frogs, toads, salamanders, and newts.

Reproduction

The biological process by which new individual organisms are produced, either sexually with genetic contribution from two parents, or asexually from one.