State and briefly define the tools of monetary policy available to the Federal Reserve.
What will be an ideal response?
The tools are: (1) the target federal funds rate range, the range for the interest rate at which banks make overnight loans to each other; (2) the discount rate, the interest rate the Fed charges on the loans it makes to banks; and (3) the reserve requirement, the level of reserves (vault cash or deposits at the Fed) a bank is required to hold.
You might also like to view...
If the federal budget is initially balanced and government expenditures remain constant, then an increase in GDP will _________ tax revenues and create a budget _________.
A) increase tax revenues and create a budget surplus. B) increase tax revenues and create a budget deficit. C) decrease tax revenues and create a budget surplus. D) decrease tax revenues and create a budget deficit.
A partnership can raise funds for expansion in which of the following ways?
A) issuing stock through secondary markets B) taking on more partners C) issuing stock through financial markets D) all of the above