1.Which of the following is a tool that is most used by the Fed to control the q

Question

1.Which of the following is a tool that is most used by the Fed to control the quantity of money?

real interest rate

government expenditure multiplier

open market operations

excess reserves

2.Which of the following are components of an interest rate that can be measured in percentage points?

duration

expected inflation and default risk

time value of money

transaction costs

All of the answers

3.The current chairman of the Federal Reserve is

Alan Greenspan.

Paul Volcker.

Janet Yellen.

Jerome Powell

real interest rate

government expenditure multiplier

open market operations

excess reserves

Explanation / Answer

a) Open market operations where the fed buys and sells the bonds in the market are one of the major tool of the fed to control the money supply in the market. The answer is "C".

b) Transaction cost can be measured in the percentage point.

c) Jerome Powell is the current chairman of the federal reserve.

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