It Is the Responsibility of the Trading Desk at the Federal

question 41

Multiple Choice

It is the responsibility of the Trading Desk at the Federal Reserve Bank of New York to implement policies in the form of

• A) changes in the spread between the federal funds rate and the discount rate that are consistent with rules established by the twelve Federal Reserve bank presidents.
• B) variations in reserve requirements that are consistent with the announcements by the Chair of the Fed's Board of Governors.
• C) changes in foreign exchange rates that are consistent with policies established by the Secretary of the Treasury.
• D) buying or selling government securities that are consistent with the FOMC Directive.

---

Definitions:

Deontology

An ethical theory that emphasizes duty and rules over the outcomes of actions.

Hedonism

A philosophical theory or approach that argues that pleasure and happiness are the primary or most important intrinsic goods and the aim of human life.

Pragmatism

A philosophical approach that assesses the truth of meaning of theories or beliefs in terms of the success of their practical application.

End Result

The final outcome or conclusion of a process or a series of actions.