The four main policy tools the Federal Reserve System uses to influence the interest rate are setting
A) the prime rate,open market operations,extraordinary crisis management and setting the excess reserve ratio.
B) quantitative easing,market interest rate and the discount rate,as well as open market operations.
C) the discount rate,open market operations,extraordinary crisis measures and setting the required reserve ratio.
D) credit easing,the discount rate,setting tax rates,and setting the required reserve ratio.
E) quantitative easing,open market operations,setting tax rates,and setting the required reserve ratio.
Correct Answer:
Verified
Q155: Which of the following statements is correct?
A)required
Q156: The required reserve ratio is the minimum
Q157: Open market operations are the
A)purchase or sale
Q158: Which of the following is a tool
Q159: The discount rate is
A)the interest rate paid
Q161: The Board of Governors of the Federal
Q162: In 2008,the Fed created a new policy
Q163: The Board of Governors of the Federal
Q164: Which of the following policy tools did
Q165: The minimum percent of deposits that banks
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