Which of the following is least likely a tool used
Which of the following is least likely a tool used by the U.S. Federal Reserve Bank to directly influence the level of interest rates?
A. Verbal persuasion.
B. Open market operations.
C. Setting the rate on 30-year bonds.
参考解答
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2024-11-14 23:14:17
Ans:C;C is correct because the U.S. Federal Reserve Bank (Fed) uses policy tools to directly influence short-term interest rates. It only indirectly influences long-term interest rates. The market, not the Fed, sets rates on 30-year bonds.The four interest rate tools of the Fed are as follows:The discount rate: the rate at which banks can borrow reserve from the Fed;Open market operations: buying or selling of Treasury securities by the Fed in the open market;Bank reserve requirements: the percentage of deposits that banks must retain;Persuading banks to tighten or loosen their credit policies.
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