ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fiscal policy
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Monetary policy
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Either A or B
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None of the above
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Detailed explanation-1: -Is the FOMC the Same as the Fed? No, the FOMC is not the same as the Fed. The FOMC is a committee within the Fed, the Federal Open Market Committee, and is responsible only for open market operations. The Fed’s Board of Governors set the discount rate and the reserve requirements.
Detailed explanation-2: -What Does It Mean That the Federal Reserve Is a Central Bank? A central bank is a financial institution that is responsible for overseeing the monetary system and policy of a nation. A central bank regulates the money supply and sets a nation’s interest rates.
Detailed explanation-3: -The Federal Reserve System, often referred to as the Federal Reserve or simply “the Fed, ” is the central bank of the United States.
Detailed explanation-4: -The Federal Reserve conducts the nation’s monetary policy by managing the level of short-term interest rates and influencing the availability and cost of credit in the economy. Monetary policy directly affects interest rates; it indirectly affects stock prices, wealth, and currency exchange rates.
Detailed explanation-5: -The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system.