What is the Fed's monetary policy instrument?
What will be an ideal response?
While the Fed could use the quantity of money, the exchange rate, or a short-term interest rate, the Fed chooses to use a short-term interest rate, in particular, the federal funds rate. The federal funds rate is the interest rate on overnight loans of reserves that commercial banks make to each other.
Economics
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In the United States, the central bank is the ________
A) Bank of America B) Federal Reserve System C) Federal Reserve Bank of New York D) Federal Reserve Bank of Washington D.C.
Economics
A firm earns a normal profit when its total revenues just offset both the ________ cost and ________ cost
A) accounting; opportunity B) accounting; replacement C) historical; replacement D) explicit; accounting
Economics