Question

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Answer 1

Answer:-

Q 17)

The correct Option is d which is to control the money supply.

This is the most important responsibility of Fed. The other important responsibilities of Fed other than monetary policy are setting rules on credit, distributing currency and making check clearance easier.

Q 18)

The correct option is c, the federal funds rate.

When a commercial bank borrows from other commercial bank it pays the federal funds rate.The other options discount, bank interest and prime rate are not the correct options.

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