Which tool of monetary policy will the Federal Reserve Bank use to raise the fed
ID: 1197151 • Letter: W
Question
Which tool of monetary policy will the Federal Reserve Bank use to raise the federal funds rate from 2% to 2.25%?
Question 1 options:
Open-market operations
The discount rate
A change in reserve requirements
Margin requirements
Central banks, such as the Federal Reserve Bank, are responsible for:
Question 2 options:
both monetary policy and fiscal policy.
monetary policy but not fiscal policy.
fiscal policy but not monetary policy.
neither monetary policy nor fiscal policy.
Monetary policy is:
Question 3 options:
a variation of fiscal policy.
undertaken by the Treasury.
undertaken by the Fed.
the regulation of monetary institutions.
Open-market operations
The discount rate
A change in reserve requirements
Margin requirements
Explanation / Answer
ans 1
a) Open-market operations
ans 2
b) monetary policy but not fiscal policy.
ans 3
d) the regulation of monetary institutions.
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