Answered

Lessons

1. (Multiple Choice Worth 3 points)

Which of the following describes one of the ways in which the Federal Reserve has an impact on the national economy?

A. The Federal Reserve helps the economy by keeping inflation low in times of economic growth.

B. The Federal Reserve keeps interest rates low, discouraging loans, to prevent the economy from growing too fast.

C. The Federal Reserve issues securities, which takes money out of circulation, slowing economic growth.

D. The Federal Reserve collects income taxes, which hurts the national economy by taking money out of circulation.

Question 8 (Not Answered)



Answer :

GinnyAnswer

Final answer:

The Federal Reserve System employs various tools like open-market operations, discount rate adjustments, and reserve requirements to influence interest rates and impact economic stability.


Explanation:

The Federal Reserve System is composed of the Board of Governors, Federal Reserve Banks, and the Federal Open Market Committee playing key roles in U.S. monetary policy establishment. They control monetary policy through tools like open-market operations, discount rate adjustments, and reserve requirements, influencing interest rates to impact economic stability. By adjusting monetary variables such as the discount interest rate and money supply, the Federal Reserve can manage interest rates and stimulate or slow down economic growth.


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