The tool the Fed uses most often to implement monetary policy is
A. moral suasion.
B. control of required reserves.
C. control of member banks' credit standings.
D. open market operations.
D. open market operations.
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The price a borrower must pay for the use of other people's money is called
A) a dividend. B) financial capital. C) liquidity. D) interest.
High concentration measures will understate the extent of competition in a market if
A) the true geographical scope of the market is global rather than national. B) entry into the industry is easy. C) the geographical scope of the market is regional rather than national. D) Both answers A and B are correct.
The recent growth records of Japan and Hong Kong during the last 50 years indicate that a nation can grow rapidly without:
a. securely defined property rights. b. adopting modern technology. c. significant capital formation. d. abundant domestic natural resources.
Which of the following resulted from the Smoot-Hawley trade bill of 1930?
a. The stock market began a steady recovery from the crash of October 1929. b. Many countries responded by imposing higher tariffs on American products, and the volume of international trade fell sharply. c. Imports decreased, while exports increased, resulting in an overall increase in GDP and tariff revenues. d. The unemployment rate, which had been rising, began to steadily decline as jobs were protected by the trade restrictions.