Frequently Asked Question
Which is not a process the Federal Reserve uses to control the level of business activity?
A. Reserve requirements
B. Margin requirements
C. Balance of payments
D. Open market operations
Answer: B
Although the Fed sets margin requirements, that power is used to regulate financial markets, not to control the level of underlying business activity.
B. Margin requirements
C. Balance of payments
D. Open market operations
Answer: B
Although the Fed sets margin requirements, that power is used to regulate financial markets, not to control the level of underlying business activity.
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