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:

Electroconvulsive Therapy

A psychiatric treatment involving electrically induced seizures for therapeutic effect, primarily used to treat severe depression and bipolar disorder.

Electric Current

The movement of electrical charge along a conducting material, usually quantified in amperes.

Anesthetized Patient

A patient who has been given anesthesia, making them temporarily unconscious or unable to feel pain during medical procedures.

Selective Serotonin Reuptake Inhibitors

A class of drugs commonly used as antidepressants that work by increasing serotonin levels in the brain.