Which of the following is the most frequently used tool the Fed uses to control the supply of money?
A. the discount rate
B. the reserve requirements
C. open market operations
D. the 30-year home-mortgage interest rate
Answer: C
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Refer to the graph below illustrating the Lorenz Curves for Sweden, the United States, and Brazil. Which country has the greatest equality in the distribution of income?
a. Sweden
b. United States
c. Brazil
d. The greatest equality in the distribution of income cannot be determined from this graph
Bond prices and interest rates are inversely related
Indicate whether the statement is true or false
The government can fight inflation by manipulating both aggregate demand and aggregate supply
a. True b. False Indicate whether the statement is true or false
Which of the following is correct concerning opportunity cost?
a. Except to the extent that you pay more for them, opportunity costs should not include the cost of things you would have purchased anyway. b. To compute opportunity costs, you should subtract benefits from costs. c. Opportunity costs and the idea of trade-offs are not closely related. d. Rational people should compare various options without considering opportunity costs.