Social Studies, 25.04.2020 00:52 12375819
The Federal Reserve can use four tools to achieve its monetary policy goals: the discount rate, reserve
requirements, open market operations, and interest on reserves. All four affect the amount of funds in the
banking system
Which of the following describes discount rate?
A
The interest rate Reserve Banks charge commercial banks for short-term loans.
B
The portions of deposits that banks must hold in cash, either in their vaults or on deposit at a
Reserve Bank
с
The Federal Reserve Bank of New York buying and selling U. S. government securities.
D
The newest and most frequently used tool given to the Federal Reserve by Congress after the
Financial Crisis of 2007-2009.
Answers: 2
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The Federal Reserve can use four tools to achieve its monetary policy goals: the discount rate, rese...
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