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46. The Federal Reserve’s tool to direct the economy is through monetary policy. a. True. b....

46. The Federal Reserve’s tool to direct the economy is through monetary policy.

a. True.

b. False.

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Answer #1

This is true. Federal Reserve is the Central bank of United States of America who is entrusted with the task of directing the economy through monetary policy. Monetary policy, as the word suggests, relates to the directing the money supply in the economy. Some instruments of Monetary Policy are bank rate, open market operations, etc.

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