The Federal Reserve generally uses ___________________ to implement monetary policy. reserve requirements discount policies government spending...

Question

Question

The Federal Reserve generally uses ___________________ to implement monetary policy.

reserve requirements

discount policies

government spending and taxes

fiscal policy

open market operations

Answer 1

Answer #1

open market operations

the above is the answer..

this is the major instrument of monetary policy under which the Fed impact the money supply in the economy

Answer 2

Similar Homework Help Questions

Which of the following is not an instrument of monetary policy? a. Reserve requirements b. Margin...

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
Suppose the Fed wanted to engage in an expansionary monetary policy. Which of the following should...

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....
Which tool of monetary policy does the Federal Reserve use most often? open-market operations term auctions...

Which tool of monetary policy does the Federal Reserve use most often? open-market operations term auctions changes in reserve requirements changes in the discount rate

18. Suppose the Federal pose the Federal Reserve opted to implement monetary policy by decreasing the...

18. Suppose the Federal pose the Federal Reserve opted to implement monetary policy by decreasing the interest id on excess reserves. This would be an example of a. Expansionary monetary policy b. Contractionary monetary policy c. Discretionary monetary policy d. Exemplary monetary policy 19, A policy decision by the Federal Reserve to sell short-run U.S. securities out of the New York branch would be an example of a. Expansionary monetary policy through decreasing the federal funds rate b. Contractionary monetary...
The government can reduce inflation with the help of both fiscal and monetary policy.

The government can reduce inflation with the help of both fiscal and monetary policy. An effective combination of these policies to reduce inflation would be to _______ and _______ Increase taxes; lower the reserve requirement ratio Increase taxes; sell government bonds Decrease taxes; buy government bonds Decrease government spending; lower discount rate
11. There are several tools that the Federal Reserve System uses to implement monetary policy. a....

11. There are several tools that the Federal Reserve System uses to implement monetary policy. a. Describe these tools b. Explain how the Fred would use each tool in order to increase the money supply.

Explain how fiscal policy (government spending and taxes) and monetary policy (determining interest rates) affect the...

Explain how fiscal policy (government spending and taxes) and monetary policy (determining interest rates) affect the level of output and employment in the economy according to Keynesian theory. What fiscal and monetary policies should the government follow to pull the economy out of a recession?
What are the three main tools the Federal Reserve (Fed) has at its disposal to carry out monetary policy? setting...

What are the three main tools the Federal Reserve (Fed) has at its disposal to carry out monetary policy? setting the discount rate, increasing taxes, and building highways conducting open market operations, increasing spending by the federal government, and decreasing taxes conducting open market operations, setting the discount rate, and paying interest on reserves O paying interest on reserves, conducting open market operations, and controlling money demand During the financial crisis of 2007-2008, the Fed engaged in lending to certain...
Explain why the Federal Reserve has more control over the monetary base when it uses open...

Explain why the Federal Reserve has more control over the monetary base when it uses open market operations than when it uses discount window lending.

The government of Broncoland uses monetary policy tools similar to the Federal Reserve System of the...

The government of Broncoland uses monetary policy tools similar to the Federal Reserve System of the United States and defines its monetary aggregates the same way as the Federal Reserve System of the United States. The required reserve ratio in Broncoland is 10%. The following information also applies to the government of Broncoland: Bank deposits at the central bank = $200 million Currency held by the public = $150 million Currency in bank vaults = $100 million Checkable bank deposits...