The Federal Reserve's power to limit the amount of credit that may be used to purchase stocks and bonds is referred to as:

Question

Quizplus · Accepted Answer

The Federal Reserve's power to limit the amount of credit used to purchase stocks and bonds is not referred to as Regulation Q, moral suasion, open-market requirements, or the announcement effect. These terms relate to other aspects of the Federal Reserve's functions and regulatory powers. Regulation Q, for example, historically referred to the Fed's power to set maximum interest rates on savings deposits.

The Federal Reserve's Power to Limit the Amount of Credit