Which of the Following Statements About Fed Management of the Money

question 64

Multiple Choice

Which of the following statements about Fed management of the money supply is correct?

• A)over the past thirty years,the Fed has always stayed within its pre-announced target rates for growth in M2.
• B)the most common tool used by the Fed is a change in the required ratio of reserves to deposits.
• C)the rate at which the Fed lends money to banks is called the "Federal Funds rate."
• D)the Fed must report each week to Congress on the conduct of monetary policy.
• E)none of the above

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