State and briefly define the tools of monetary policy available to the Federal Reserve.
What will be an ideal response?
The tools are: (1) the target federal funds rate range, the range for the interest rate at which banks make overnight loans to each other; (2) the discount rate, the interest rate the Fed charges on the loans it makes to banks; and (3) the reserve requirement, the level of reserves (vault cash or deposits at the Fed) a bank is required to hold.
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Refer to the graph shown. If the firm is producing 450 units of output, profit is equal to:
A. $38. B. ?$30. C. $30. D. $0.
Eric provides cheese (H) and milk (M) to the market with the following total cost function: C(H, M) = 10 + 0.4H2 + 0.2M2. The prices of cheese and milk in the market are $2 and $5 respectively. Assume that the cheese and milk markets are perfectly competitive. What output of milk maximizes profits?
A. 12.5 B. 1.25 C. 15 D. 20
The shipbreakers of Alang are
A) a metaphysical representation of the WTO, deriving from Edgar Rice Burroughs' Princess of Mars. B) an early version of the Russian Ice-breaker of the Dnieper-Alang class. C) a capital-intensive industry. D) competing with pollution-producing industries in countries outside of India. E) doing environmentally conscious work.
Under Alan Greenspan and Ben Bernanke, the Federal Reserve was successful in pursuing a ________ policy
A) preemptive B) inflation targeting C) exchange rate targeting D) monetary targeting