The Fed's Control of the Money Supply Is Not Precise

question 36

Multiple Choice

The Fed's control of the money supply is not precise because

• A)Congress can also make changes to the money supply.
• B)there are not always government bonds available for purchase when the Fed wants to perform open-market operations.
• C)the Fed does not know where all U.S.currency is located.
• D)the amount of money in the economy depends in part on the behavior of depositors and bankers.

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Definitions:

Pro-social Behaviors

Actions intended to benefit others, such as helping, sharing, and cooperating.

Good-enough Parenting

A concept suggesting that parenting doesn’t have to be perfect to raise well-adjusted children, but meeting basic needs and providing support and love is sufficient.

Baumrind

A psychologist known for her research on parenting styles, identifying three major approaches: authoritative, authoritarian, and permissive.

Lenient

Exhibiting tolerance or a mild disposition in enforcing strict rules or punishments.