The Fed relies on three instruments to control the money supply. They are
a. taxes, reserve requirements, and the discount rate
b. government spending, the discount rate, and open market operations
c. reserve requirements, the discount rate, and currency liability
d. reserve requirements, the discount rate, and open market operations
e. reserve requirements, taxes, and open market operations
D
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Employment protection laws make it ________ for firms to hire people, which can result in a(n) ________ in the number of people who are structurally unemployed
A) more risky; increase B) more risky; decrease C) less risky; increase D) less risky; decrease
When conducting open market operations, at what price is it willing to buy or sell securities?
A) at the price agreed upon by the Federal Open Market Committee B) at the price agreed upon by the Board of Governors C) at the price set by the Fed chair D) at whatever price is necessary to carry out its open market operations