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After the FOMC Sets a Target for the Federal Funds

Question 51

Multiple Choice

After the FOMC sets a target for the federal funds rate, how does the New York Federal Reserve Bank nudge the rate toward that target?


A) It begins the process of refinancing mortgages it holds.
B) It buys or sells securities.
C) It directs all nationally chartered banks to adjust their rates accordingly.
D) It holds a press conference.
E) It instructs Congress on drafting the appropriate funds rate bill.

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