Which Tool of Monetary Policy Does the Federal Reserve Use

question 43

Multiple Choice

Which tool of monetary policy does the Federal Reserve use most often?

• A)term auctions
• B)open-market operations
• C)changes in reserve requirements
• D)changes in the discount rate

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Definitions:

North American Free Trade Agreement

The North American Free Trade Agreement (NAFTA) was an agreement among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries.

Wages

The compensation paid by employers to employees for their labor, typically expressed as an hourly rate, monthly salary, or piece rate.

Economic Well-Being

A measure of how well individuals, communities, and societies prosper economically, taking into account wealth, consumption, and access to resources.

Exporter

A person or entity that sells goods or services produced in one country to another country.