The Federal Reserve's most-used policy tool is open market operations, with which it can control short-term interest rates.
Answer the following statement true (T) or false (F)
True
Open-market operations are commonly used because they are flexible and can be used for small adjustments in interest rates.
You might also like to view...
Which of the following goods is best described as being sold in a monopolistically competitive market?
A) automobiles B) wheat C) fast food D) postage stamps
Because there is an imbalance of information in a lending situation, we must deal with the problems of adverse selection and moral hazard. Define these terms and explain how financial intermediaries can reduce these problems
What will be an ideal response?
An increase in supply means that:
a. the supply curve has shifted leftward. b. there is an upward movement along the supply curve. c. producers are willing to sell more at each price. d. there is an downward movement along the supply curve.
Refer to the information provided in Figure 7.10 below to answer the question(s) that follow. 
Figure 7.10Refer to Figure 7.10. At Point C, the absolute value of the slope of q2 = 200 is
A. less than 2. B. exactly equal to 2. C. greater than 2. D. indeterminate from this information.