ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the crowding-out effect, the money multiplier, and the required reserve ratio
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the Office of Management and Budget, the Federal Open Market Committee, and the Senate Budget Committee
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the reserve requirement, the discount rate, and open market operations
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demand deposits, money creation, and the U.S. Mint
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Detailed explanation-1: -3. The Federal Reserve commonly uses three strategies for monetary policy including reserve requirements, the discount rate, and open market operations.
Detailed explanation-2: -The Fed has traditionally used three tools to conduct monetary policy: reserve requirements, the discount rate, and open market operations.
Detailed explanation-3: -Central banks have four main monetary policy tools: the reserve requirement, open market operations, the discount rate, and interest on reserves. 1 Most central banks also have a lot more tools at their disposal. Here are the four primary tools and how they work together to sustain healthy economic growth.
Detailed explanation-4: -The primary tools that the Fed uses are interest rate setting and open market operations (OMO). The Fed can also change the mandated reserves requirements for commercial banks or rescue failing banks as lender of last resort, among other less common tools.
Detailed explanation-5: -Reverse repos are a tool that is used to manage money market interest rates and provide the Federal Reserve with greater control over short-term rates.