Knowee
Questions
Features
Study Tools

Multiple Choice QuestionWhich tool, used by the Federal Reserve Board to control the money supply, is the most common and is performed almost daily?Multiple choice question.Changing the reserve requirementsEmploying credit controlsOpen market operationsChanging the discount rate

Question

Multiple Choice QuestionWhich tool, used by the Federal Reserve Board to control the money supply, is the most common and is performed almost daily?Multiple choice question.Changing the reserve requirementsEmploying credit controlsOpen market operationsChanging the discount rate

🧐 Not the exact question you are looking for?Go ask a question

Solution

The answer is "Open market operations".

This is the most common tool used by the Federal Reserve Board to control the money supply. Open market operations involve the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. These operations are flexible, and thus, can be used on any scale, and can be implemented quickly, making them a preferred method of stabilizing the money supply.

This problem has been solved

Similar Questions

Multiple Choice QuestionThe Fed's authority to establish and enforce credit rules for financial institutions and private investors is done through ______.Multiple choice question.changing the reserve requirementopen market operationschanging the discount ratecredit controls

Multiple Choice QuestionSetting the reserve requirement, setting the discount rate, and collection data on the money supply are all activities of Blank______.Multiple choice question.the economic advisory boardthe Treasury departmentthe U.S. Congressthe Federal Reserve

Multiple Choice Question_____ by the Fed can determine how large a down payment businesses must make on credit purchases of expensive machinery.Multiple choice question.Discount rate controlsReserve requirementsOpen market operationsCredit controls

The methods the Federal Reserve uses to manage the economy include all except: Multiple choice question.controlling reserve requirementscontrolling open-market operationscontrolling the federal budgetchanging the discount rate

Multiple Choice QuestionThe entity that determines and implements the nation's monetary policy and controls the money supply to promote stable prices and economic growth in the U.S. economy is the:Multiple choice question.Financial Open Money Committee. Financial Open market Committee. Federal Open Market Committee.Federal Open Money Committee.

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.