Question
Monetary policy relates to the actions taken by the Federal Reserve to influence the economy and prices through Select one: A. expanding or contracting the
Monetary policy relates to the actions taken by the Federal Reserve to influence the economy and prices through Select one: A. expanding or contracting the amount of funds available for lending and borrowing. B. setting wage and price controls to dampen inflationary pressures. C. trade agreements and import barriers to achieve a positive balance of trade. D. determining tax policy and other fiscal measures. Question 2 Not yet answered Points out of 1.00 Not flaggedFlag question Question text The rate of interest at which banks may borrow overnight funds from one another is called the Select one: A. discount rate B. fed funds rate C. prime rate D. reserve rate Question 3 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Which of the following methods of carrying out monetary policy is considered by the Fed to be its most powerful and precise tool? Select one: A. Setting legal reserve requirements B. Establishing the discount rate of borrowing C. Open market operations D. None of the above Question 4 Not yet answered Points out of 1.00 Not flaggedFlag question Question text Open market operations may best be described as the Federal Reserve's buying or selling of Select one: A. U.S. government and agency securities in the financial markets. B. foreign currencies in the foreign exchange makrets. C. U.S. treasury securities directly from the U.S. Treasury. D. all of the above. Question 5 Not yet answered Points out of 1.00 Not flaggedFlag question Question text If the Fed believes that the U.S. economy is overheated and in danger of unacceptably high rates of price inflation, it will most likely Select one: A. lower the Federal Reserve discount rate of lending. B. sell U.S. Treasury securities from its own portfolio to selected bond dealers. C. decrease the legal reserve ratio for all of the nation's banks. D. buy U.S. Treasury securities from selected bond dealers.
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