Which tool of monetary policy will the Federal Reserve Bank use to raise the fed

Question

Which tool of monetary policy will the Federal Reserve Bank use to raise the federal funds rate from 2% to 2.25%?

Question 1 options:

Open-market operations

The discount rate

A change in reserve requirements

Margin requirements

Central banks, such as the Federal Reserve Bank, are responsible for:

Question 2 options:

both monetary policy and fiscal policy.

monetary policy but not fiscal policy.

fiscal policy but not monetary policy.

neither monetary policy nor fiscal policy.

Monetary policy is:

Question 3 options:

a variation of fiscal policy.

undertaken by the Treasury.

undertaken by the Fed.

the regulation of monetary institutions.

Open-market operations

The discount rate

A change in reserve requirements

Margin requirements

Explanation / Answer

ans 1

a) Open-market operations

ans 2

b) monetary policy but not fiscal policy.

ans 3

d) the regulation of monetary institutions.

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