ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increase interest rates
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Decrease interest rates
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Engage in quantitative easing
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Recommend to Congress that fiscal stimulus be increased
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Detailed explanation-1: -On a four-quarter change basis, total PCE price inflation was expected to be 5.5 percent in 2022, while core inflation was expected to be 4.7 percent, both lower than in the November projection.
Detailed explanation-2: -The president is responsible for all of the Reserve Bank’s activities, including monetary policy, bank supervision and regulation, and payments services. In addition, the president serves on the Federal Reserve’s chief monetary policymaking body, the Federal Open Market Committee (FOMC).
Detailed explanation-3: -The Federal Reserve seeks to control inflation by influencing interest rates. When inflation is too high, the Federal Reserve typically raises interest rates to slow the economy and bring inflation down.
Detailed explanation-4: -Manipulating Interest Rates. Open Market Operations. Reserve Requirements. Influencing Market Perceptions. Securities Lending Facility. Quantitative Easing. The Bottom Line.