A) Open market operations
It is used frequently because of its flexible nature and because of that it is conducted several times weekly to keep the federal funds rate at the target level.If federal Reserve wants to increase money supply in the economy,it purchases securities and other assets and injects money in return in the economy and if it wants to reduce money supply,it sells out the securities.
Which tool of monetary policy does the Federal Reserve use most often? open-market operations term auctions...
QUESTION 19 Which of the following is a monetary policy tool? A open-market purchases of corporate stock B. changes in the required reserve requirement. OC changing tax rates OD changes in the prime rate QUESTION 20 The Federal Reserve most frequently relies on which of the following to change the money supply? O A changes in the discount rate B. changes in the required reserve ratios Copen-market operations OD changes in the inflation rate
According to our discussion, the most widely used monetary policy tool used by the Federal Reserve is ___________. A- altering the discount rate B- altering the reserve requirements C- altering the money supply D- altering marginal tax rates
← BACK TO ASSIGNMENT OVERVIEW Assignment: Federal Open Market Committee Explain the Federal Open Market Committee, Open Market Operations, and the Federal Funds Rate Question Of the following, which is the most commonly used tool of monetary policy in the United States? Select the correct answer below O open market operations O changing reserve requirements O changing the discount rate O changing tax revenues FEEDBACK MORE INST Content attribution REDESIGN READY FO
The Federal Reserve generally uses ___________________ to implement monetary policy. reserve requirements discount policies government spending and taxes fiscal policy open market operations
Suppose the Fed wanted to engage in an expansionary monetary policy. Which of the following should it do? a. Increase the reserve requirement ratio. b. Buy bonds on the open market. c. Sell bonds on the open market. d. Lower taxes. e. Increase the discount rate. The interest rate at which banks can borrow funds from the Fed is known as… a. the federal funds rate. b. the discount rate. c. the prime rate. d. the real interest rate. e....
Why does the Fed use open market operations to a greater extent than reserve requirements in its conduct of monetary policy?
5. The Federal Reserve's organization There are Federal Reserve regional banks. Which of the following is a responsibility of the Federal Open Market Committee (FOMC)? Issuing mortgages to homeowners Making decisions regarding monetary policy Buying and selling stocks The Federal Reserve's primary tool for changing the money supply is the U.S. economy (the money supply), the Federal Reserve will In order to increase the number of dollars in government bonds. 5. The Federal Reserve's organization There are Federal Reserve regional...
Which of the following is not an instrument of monetary policy? a. Reserve requirements b. Margin requirements on stocks c. Discount policy d. Open market operations
8. Federal funds rate targeting Aa Aa In conducting monetary policy, the Federal Open Market Committee (FOMC) targets a Federal funds rate and the Federal Reserve Bank of New York uses open-market operations to achieve and maintain the target rate. Suppose that the following graph shows the demand for Federal funds. Use the orange line (square symbols) to plot the supply of Federal funds (also called "the supply of excess reserves") when the FOMC targets a Federal funds rate of...
Select a Monetary Policy Tool and explain how the actions of the tool contract or expand the economy. Analyze how the Monetary Policy Tool meets the Role of the Federal Reserve. How does the chosen Monetary Policy Tool impact you? The one I choose for this was "Open Market Operstions" Help pleae :)